LIHU‘E — Kaua‘i’s only homegrown grocery chain reluctantly announced Tuesday it has sold its stores to a Mainland company after 85 years of family ownership.
Big Save Value Centers signed a contract on May 11 to sell five of its six stores for an undisclosed price to QSI Inc., an O‘ahu-based company doing business as Times Supermarket. QSI is a subsidiary of PAQ Inc., which operates as Food4Less in California. The deal is set to close this summer, officials said in a press release.
Under the terms of the contract, Times will operate the Kapa‘a, Hanalei, Koloa, ‘Ele‘ele and Waimea stores under the Big Save banner. The Lihu‘e Big Save will close during the latter half of July because Times already has a grocery at nearby Kukui Grove Center, the release states.
“This is a very difficult and emotional day for our family,” said Charles Kawakami, president and CEO of Big Save. “For the Kawakami family, Big Save has been our heritage. We have gladly and faithfully served the Kaua‘i that we all love since 1926 and it has been a privilege to have had such an important role in this community.”
During the transition in ownership, 234 managers and employees will be terminated and will go through the process of applying for jobs with the new owners. The Lihu‘e location has some 40 employees, Kawakami estimated.
Tuesday evening, the Big Save in Lihu‘e closed early and supervisors directed employees to meet at the War Memorial Conventional Hall for an official announcement led by Charles Kawakami, his son state Rep. Derek Kawakami and other administrative staff members. None of the approximately 47 employees who attended the meeting appeared surprised by the news, but they were clearly saddened.
“For a year now, we’ve been hearing rumors we’ll be closing,” Lagrimas Villon of Lihu‘e said after the meeting. “We found out about it on Sunday. It’s was so sad. Tears were running down my face.
Villon, a front-end staff member, has been with Big Save for 34 years.
“I worry about what is going to happen,” she said. “I hope we can work for the next company. I really love to work.”
She, like so many others, said working for Big Save was like being part of a big family and compared the buyout to parents who have abandoned their home.
Larry Loos, a data analyst for the Lihu‘e market and a Big Save employee of 22 years, said he is hoping to go back to being the manager of the Hanalei store.
“We are just hoping everyone can transition somewhere into the company and things will go smoothly,” he said.
Big Save representatives intend to meet with employees at other store locations during the week. Representatives from Times are scheduled to be on island today to talk to employees about the transition process.
Other impacts
Big Save’s administrative office, trucking division and Puhi warehouse — which were not part of the sale to Times — are expected to close in early August.
“We heard the rumors for the longest time that Times was buying out Big Save, but they kept it pretty tight under raps,” said a person impacted by the deal who spoke on condition of anonymity. “But we had our suspicions. We heard they tried last year but couldn’t meet the terms Big Save wanted and that’s why all the rumors began.
“In the first negotiations, Times didn’t want the Hanalei and Lihu‘e stores,” they said. “Big Save was trying to protect employees. So the deal never went through. But Charles said he wouldn’t hold back if they got a big offer. They wouldn’t hesitate to sell, but wanted to protect employees.”
Then a month ago, rumors surfaced again.
“Unfortunately, none of the staff in the administrative office knew anything,” the source said. “Just the top level.”
“For employees not picked up by Times, we will offer them a severance package,” Derek Kawakami said. “They take care of us and we have a community obligation to take care of them.”
He said over the last year, Big Save has had multiple offers with different companies.
“One of the reasons we went with Times was because they want to go with our trained employees, including their seniority and benefits,” he said.
A message seeking comment was left for Times President Bob Stout on Tuesday, but the call was not returned by press time.
In a prepared statement, John Quinn, QSI chairman and CEO, pledged a smooth transition for customers of Big Save.
“We are truly honored to be acquiring the Big Save chain, especially considering its sterling record of outstanding service and quality goods for the people of Kaua‘i,” he said. “Times Supermarket is deeply rooted in Hawaii’s way of life and we look forward to building on Big Save’s 85-year legacy by offering superior customer service, value pricing, and quality local products.”
Brothers Suburo and Furturo Kawakami and their spouses founded the original Kawakami stores in Waimea and Hanapepe in 1926. The family businesses grew and in 1958 consolidated with Minoru Furugen’s business and incorporated as Big Save. The families formed a 50-year agreement to remain in partnership, at the end of which they would only continue if all families wished to by unanimous agreement, Derek Kawakami said.
The agreement came to an end in 2008, and “all the different options out there left families fighting.” He did not wish to say which family members chose to discontinue the arrangement.
“Shareholders with family members operating the grocery stores wanted to retain ownership, while shareholders with no family members involved in the operations wanted to divest,” the press release states. “After much discussion and reviewing many options, no mutual agreement satisfactory to all shareholder groups could be reached.”
Charles Kawakami said he is satisfied with Times Supermarket as the new owner and encourages the people of Kaua‘i to support them going forward.
“Throughout the process, we felt it was imperative to find a buyer who would take care of our employees and customers,” and value the importance of investing in Kauai’s communities, he said. “Our meetings with Times Supermarket have convinced us they are the right choice and will do all that’s necessary to ensure that the needs of Kauai’s people are met.”
Times Supermarket began on O‘ahu in 1949, founded by Albert and Wallace Teruya, sons of Okinawan immigrants, to serve Hawai‘i’s plantation communities, the release said. Today, Times employs 1,300 with 17 full-service supermarket and pharmacy operations in Hawai‘i.
The Kawakami and Furugen families will continue to own and operate Kaua‘i Kookie, Menehune FoodMart convenience stores, resort shops, service stations and Subways.
However, Derek Kawakami said the family plans to close one of four Menehune stores — the Kalaheo location — and both of its resort shops within the next 60 days, citing “economic reasons.” He said he was uncertain of the number employees that will be impacted by the closures.
“To our dedicated employees and loyal customers, we appreciate all of your aloha and extend to all of you a heartfelt mahalo for all that you have meant to Big Save and the Kawakami family,” Charles Kawakami said.
In an email, Mayor Bernard Carvalho Jr. called Tuesday’s announcement a sad day for Kaua‘i.
“We thank the Kawakami family for 85 years of service to our community as a model family-owned business. Their leadership in our business community will be sorely missed,” he said. “My heart goes out to the many employees who will be impacted by the transition. We will work diligently to provide support to those who are displaced and will be seeking new employment. We also look to QSI Inc. to step into its role as one of the county’s largest employers in a way that truly benefits its employees and the community at large.”
