Hamady
| Company type | Partnership |
|---|---|
| Industry | Retail |
| Founded | Flint, Michigan, 1911 |
| Founder | Michael and Kamol Hamady |
| Defunct | 1991 (original) |
| Fate | (bankruptcy) revived |
| Headquarters | Flint, Michigan , United States |
Area served | Flint, Michigan region |
Key people | Justin Campau, Ramsay Sadek (CEO, managing partners) |
| Products | Groceries |
| Owner |
|
Hamady was a supermarket chain headquartered in Flint, Michigan, United States. At its height, the company operated 37 stores and employed approximately 1,300 people.[1] Due to its widespread presence locally, paper grocery bags became colloquially known as “Hamady sacks”.[2]
History
Hamady Brothers was established in 1911[3] by cousins Michael and Kamol Hamady, immigrants from Lebanon who identified as brothers.[1] Their inaugural store was located at the intersection of East Dayton Street and Industrial Avenue in Flint.[1]
The initial CEO role was held by Michael Hamady, succeeded by his son Robert in 1954. Leadership later passed to his grand-nephew Jack in 1967 and then to his grandson Robert Lee in 1969. Under Robert Lee’s guidance, the company underwent restructuring before being sold to Alex Dandy in 1974.[2]
In 1980, Hamady expanded across Michigan by acquiring 21 former Kroger locations, mainly situated on the state’s west side.Cite error: The opening <ref> tag is malformed or has a bad name During July and September 1985, Hamady purchased two Hutch's supermarkets in Owosso, MichiganCite error: The opening <ref> tag is malformed or has a bad name and acquired Vescio's five stores in Saginaw County that October. These acquisitions were rebranded under the Hamady name, increasing the store count to 30.Cite error: The opening <ref> tag is malformed or has a bad name Subsequently, an existing Hamady store in Owosso was converted into a discount outlet called Price Rite. This discount brand operated under Durant Enterprises, the parent company of Dandy.Cite error: The opening <ref> tag is malformed or has a bad name
Al Kessel initiated a union-breaking contract with Kroger and employed non-union workers at significantly lower wages. Although Hamady remained a unionized business, it struggled to compete with these newly established "Kessel" Kroger outlets. To maintain operations, Hamady requested concessions from union employees, warning that failure to comply could lead to closure. The union responded by initiating a strike in November 1987. Support from other unions, including the UAW, helped close the last unionized grocery chain in Genesee County.
The strike extended for seven weeks until January 1988, severely impacting holiday sales.[2] As a consequence of lost revenue during this period, Hamady filed for bankruptcy in 1988. Dandy’s company also owned Chatham, which was liquidated due to strike effects. Following these events, many former Kroger sites and some ex-Vescio locations in Saginaw, Michigan were shut down. In March 1989, Federal bankruptcy Judge Arthur J. Spector approved a reorganization plan proposed by James McColgan Sr., chairman of M&B Distribution’s board. McColgan Investment Co., a subsidiary of M&B, acquired 21 Hamady supermarkets for approximately $17.9 million despite objections from Dandy.Cite error: The opening <ref> tag is malformed or has a bad name
By May 1989, Dandy consented to the sale of Hamady assets to McColgan Investment, which then assumed roles as chairman and chief operating officer.Cite error: The opening <ref> tag is malformed or has a bad name Under this new leadership, the UFCW agreed to contract concessions. However, sales declined during the "Desert Storm" military campaign in Iraq, leading to closure of all remaining 26 stores by 1991.[2] Thirteen of these locations were purchased by Kessel Food Markets, founded in 1981 by former Hamady vice president Al Kessel.Cite error: The opening <ref> tag is malformed or has a bad name
In August 2017, Jim McColgan Jr.Cite error: The opening <ref> tag is malformed or has a bad name announced plans to open a Hamady Complete Food Center within a former Kroger site in Flint.Cite error: The opening <ref> tag is malformed or has a bad name Unfortunately, this store ceased operations permanently after only three months due to financial underperformance.Cite error: The opening <ref> tag is malformed or has a bad name