When two companies merge, or one acquires the other, they usually present the move as a joint decision. That’s a smart idea because fans of both brands will be scared that things they like will disappear as the two companies combine.
Most acquisitions, however, are not a merger of equals. One company generally has control, and that means that as operations are combined, the redundant workers from the weaker brand tend to be cut.
Related: Convenience store chain closes all stores after bankruptcy
You would think that upper management would have the vision to keep the best of both companies, but that’s rarely the case.
These disparities tend to be larger when the original sale is presented as a purchase, not a merger. That’s generally bad news for the company being bought.
To give a very public example, Mark Cuban recently sold a majority interest in the Dallas Mavericks. At the time of that sale, the new owners shared that Cuban would still have a large role and would actually still lead basketball operations.
Just a few months later, the new owners of the team traded its star, Luka Dončić, without consulting Cuban.
When a company buys another one, it may talk about preserving its branding and other offerings, but in reality, it will only do that if it truly thinks that’s the right business move.
Image source: Maverik
Famous convenience store brand in trouble
When Maverik purchased the Kum & Go convenience store chain in August, 2023, both companies were similar in size. The two companies offered gas, hot food and the full convenience store experience (like a WaWa or a 7-Eleven).
Combining their assets gave the expalned company more heft to take on some of the giants in the convenience store space.
“We are excited to welcome Kum & Go and Solar Transport Team Members to Maverik. Together, we’ll offer our customers an adventurous and differentiated convenience store experience across fuel, food service, and inside-store offerings. We look forward to using our combined resources to grow our business and further elevate our product offerings to provide the best service to our customers,” Maverik CEO Chuck Maggelet said at the time of the deal.
More closings:
- Popular retail chain to close unprofitable store locations
- Bankrupt retail chain unloads store leases, key assets
- Popular discount retailer files bankruptcy, closes all stores
The combined company operates over 800 stores in 20 states.
It was clear from the beginning, however, that this was not a merging of equals.
Maggelet remained CEO of the company, while Kum & Go’s Tanner Krause left the company after a transition period.
The Kum & Go brand is disappearing
When the deal was first signed, Maverik suggested that the Kum & Go brand would remain in most states. The company has slowly reversed that decision.
It has already rebranded the Kum & Go locations in Utah, Idaho, Colorado, and Wyoming under the Maverik brand. The chain also sent an email to its loyalty program members recently saying that its 41 stores in Oklahoma would also replace the Kum & Go brand with the Maverik name.
And while Maverik appears to be eliminating the Kum & Go brand, the company did not fully confirm that,
“Maverik’s spokesperson said the company is taking a ‘thoughtful, market-by-market approach’ to the rebrands,” C-Store Dive reported.
The parent company shared that it will follow the same approach “before confirming each state’s rebrand.”
That seems like a confirmation that the end of Kum & Go is inevitable, although there will be some “thoughtful” planning before the Maverik brand takes over.
Related: Beloved breakfast restaurant chain closing more locations
Stores briefly close when they are updated to the Maverik brand and its BonFire hit food program. That’s an offering the company seems especially proud of.
“We’re known for our premium BonFire food — made fresh in every Maverik, every day — and awesome values on fuel, drinks and snacks. Maverik sells exclusive products such as fresh-made, gourmet burritos, sandwiches, pizzas, toasted-subs, cookies, and coffee blends from around the world,” it shared on its website.
