View source for AppleTree Markets

{{Short description|Defunct supermarket chain in Texas, US}}
'''AppleTree Markets''' was a [[supermarket]] chain in [[Texas]] formed in 1969 when [[Safeway Inc.|Safeway]] opened its first stores in [[Houston]], which were spun off under the AppleTree name in 1988. The division once had 100 stores in [[Greater Houston]] and [[Greater Austin]]. By January 21, 2002, AppleTree had reduced its holdings to two stores in [[Bryan, Texas]], where it had shifted its headquarters. One of the remaining locations was sold in 2009 and the final location, in Bryan at [[Texas State Highway 21|Highway 21]] and [[Texas State Highway 6#Bryan-College Station business loop|Texas Avenue]], closed in early 2012, marking the end of the chain.

==History==

===Safeway===
Safeway put its 18-year-old Houston division up for sale in 1988 in an effort to raise money to pay off debts from a $4 billion leveraged buyout in 1986.<ref>Bivins, Ralph. "[http://www.chron.com/CDA/archives/archive.mpl?id=1988_550456 Local firm to buy 99 Safeway stores]." ''[[Houston Chronicle]]''. Tuesday June 14, 1988. Section 1, Page 1. Retrieved on July 1, 2010.</ref> On June 14, 1988, Safeway agreed to sell its Houston division to Texas Supermarkets Inc., a holding company formed by local investors Duncan Cook & Co. and the Sterling Group. The deal included 50 stores in Houston, 20 in Austin, stores in 23 other communities in East and Central Texas, along with a distribution center, frozen food warehouse, bread manufacturing plant and milk processing plant.<ref>Bivins, Ralph. "[http://www.chron.com/CDA/archives/archive.mpl?id=1988_550457 Sale of local Safeways severs Texas ties]." ''[[Houston Chronicle]]''. Wednesday June 15, 1988. Business 1. Retrieved on July 1, 2010.</ref> At the time of the $174 million (~${{Format price|{{Inflation|index=US-GDP|value=174000000|start_year=2010}}}} in {{Inflation/year|US-GDP}}) transaction, Safeway's 18 percent market share ranked third in the Houston market behind [[Kroger]], with 27 percent, and [[Randall's Food Markets]], with 21 percent.<ref name=safeway>Bivins, Ralph. "[http://www.chron.com/CDA/archives/archive.mpl?id=1988_573834 Safeways drew $174 million/South Texas deal detailed]." ''[[Houston Chronicle]]''. Friday September 30, 1988. Business 1. Retrieved on July 1, 2010.</ref> M. Dean Gantt, the former Houston division manager, assumed the position of president and chief executive officer of Texas Supermarkets Inc., which initially owned only eight of the stores from the transaction and leased the rest from Safeway.<ref name=safeway/> Texas Supermarkets was allowed to operate under the Safeway banner until June 28, 1989, but it would continue to do so until a new name began appearing in July 1989—AppleTree Markets.<ref>Bivins, Ralph. "[http://www.chron.com/CDA/archives/archive.mpl?id=1989_636174 Texas Safeway stores getting new name]." ''[[Houston Chronicle]]''. Thursday July 13, 1989. Business 1. Retrieved on July 1, 2010.</ref> Five stores were renamed Budget Stores, stores with slightly lower prices on some items and fewer specialty shops such as delis, bakeries, and floral shops. The last of the Safeway banners was replaced in September 1989.

Gantt retired abruptly in October 1989 and was replaced a month later by Arthur L. Patch, senior vice president of [[Dublin, California]]-based [[Lucky Stores]] Inc.<ref>"[http://www.chron.com/CDA/archives/archive.mpl?id=1989_667286 Ex-Safeway exec to head AppleTree]." ''[[Houston Chronicle]]''. Thursday November 30, 1989. Business 8. Retrieved on July 1, 2010.</ref>

===Bankruptcy===
The company struggled with the debt that originated from the 1988 leveraged buyout out Safeway's stores.<ref>Narom, Beverly and Cynthia Shanley. "Supermarkets stocking up for major food fight." ''[[Houston Post]]''. April 26, 1992. A1. Available at the Microfilm desk of the Jesse H. Jones Building of the [[Houston Public Library]] Central Library. "It had also been no secret that one of the largest Houston operators, AppleTree Markets, had been struggling under the heavy debt load of its 1988 leveraged buyout of Safeway's area stores."</ref> After failed attempts to restructure that debt,<ref>Sixel, L.M. "[http://www.chron.com/CDA/archives/archive.mpl?id=1991_789764 AppleTree gets $10 million line of credit]." ''[[Houston Chronicle]]''. Wednesday June 19, 1991. Business 3. Retrieved on July 1, 2010.</ref><ref>Boisseau, Charles. "[http://www.chron.com/CDA/archives/archive.mpl?id=1991_805003 AppleTree gets $120 million loan]." ''[[Houston Chronicle]]''. Friday August 23, 1991. Business 2. Retrieved on July 1, 2010.</ref><ref>[http://www.chron.com/CDA/archives/archive.mpl?id=1991_824842 Proposed AppleTree buyout dissolves], ''Houston Chronicle'', November 26, 1991.</ref> AppleTree sought [[Chapter 11, Title 11, United States Code|Chapter 11 bankruptcy]] protection in 1992.<ref>[http://www.chron.com/CDA/archives/archive.mpl?id=1992_1028426 AppleTree files for Chapter 11], ''Houston Chronicle'', January 3, 1992.</ref> Soon after the filing, AppleTree announced its plans to begin closing stores.<ref>[http://www.chron.com/CDA/archives/archive.mpl?id=1992_1034053 AppleTree plans to close five stores], ''Houston Chronicle'', January 31, 1992.</ref> Arthur Patch resigned his post in March 1992, and the chairman of the company's board, Fred R. Lummis, took the helm.<ref>[http://www.chron.com/CDA/archives/archive.mpl?id=1992_1044219 AppleTree chief resigns position/Grocery chain to close five stores], ''Houston Chronicle'', March 21, 1992.</ref> Also a growing problem was the chain's aging store base. The bulk of Safeway units in Houston dated from the late 1960s and early 1970s, and a logo change in 1981-1982 was the only alteration, if any, to most of such stores before the AppleTree split. Many former [[Weingarten's]] stores, which had been acquired by Safeway in 1983, were even older. A very small minority of Houston Safeways were built in 1986, but these were larger and had a more modern, conventional prototype.

To cut costs and raise cash, AppleTree continued to close stores or sell its stores to competitors such as [[Fiesta Mart]], [[Gerland's Food Fair]], and [[Market Basket]].<ref>[http://www.chron.com/CDA/archives/archive.mpl?id=1992_1051080 AppleTree selling 8 stores, including 4 in Houston area], ''Houston Chronicle'', April 24, 1992.</ref><ref>[http://www.chron.com/CDA/archives/archive.mpl?id=1992_1058026 AppleTree sells eight more stores], ''Houston Chronicle'', May 28, 1992.</ref> The company would also look to move its headquarters to a smaller facility,<ref>[http://www.chron.com/CDA/archives/archive.mpl?id=1992_1051210 AppleTree to look for smaller home/Current headquarters too big, costly], ''Houston Chronicle'', April 25, 1992.</ref> as well as close its distribution warehouse.<ref>[http://www.chron.com/CDA/archives/archive.mpl?id=1992_1056271 AppleTree shutting warehouse/Grocery chain to ax 150 workers], ''Houston Chronicle'', May 19, 1992.</ref>  AppleTree formerly had its headquarters in the [[Spring Branch, Houston|Spring Branch]] area and in [[Houston]].<ref>"Directors and Executives." ''Standard & Poor's Register of Corporations, Directors and Executives, Volume 2''. [[Standard & Poor's]], 1995. [https://books.google.com/books?id=29RIAAAAYAAJ&q=%22AppleTree%22+%224301+Windfern%22 637]. Retrieved from [[Google Books]] on July 1, 2010. "Appletree Markets, Inc., 4301 Windfern, Houston, TX 77041."</ref><ref name="SBManagement">"[http://sbmd.org/images/maps/Large_BoundaryMap2.pdf Boundary Map]{{dead link|date=July 2017 |bot=InternetArchiveBot |fix-attempted=yes }}." ''Spring Branch Management District''. Retrieved on December 8, 2009.</ref>

In its reorganization plan, AppleTree announced plans to close or sell 33 additional stores.<ref>[http://www.chron.com/CDA/archives/archive.mpl?id=1992_1052706 AppleTree hopes to shed more stores/Reorganization plan would close 33 sites], ''Houston Chronicle'', May 2, 1992.</ref><ref>[http://www.chron.com/CDA/archives/archive.mpl?id=1992_1053412 Japanese may have slice of revamped AppleTree], ''Houston Chronicle'', May 5, 1992.</ref><ref>[http://www.chron.com/CDA/archives/archive.mpl?id=1992_1081807 AppleTree creditors accept plan/Japanese bank would be biggest shareholder], ''Houston Chronicle'', September 18, 1992.</ref><ref>[http://www.chron.com/CDA/archives/archive.mpl?id=1992_1084169 AppleTree revival plan gets boost/Japanese bank obtains approval to raise stake], ''Houston Chronicle'', September 30, 1992.</ref>  Ultimately, AppleTree announced in November 1993 it would sell its remaining 49 stores to competitors.<ref>[http://www.chron.com/CDA/archives/archive.mpl?id=1993_1166202 Grocery wars uproot AppleTree/Chain selling all its supermarkets], ''Houston Chronicle'', November 16, 1993.</ref><ref>[http://www.chron.com/CDA/archives/archive.mpl?id=1993_1167927 Competitors carve up AppleTree/Nine rivals purchase 28 stores], ''Houston Chronicle'', November 25, 1993.</ref><ref>[http://www.chron.com/CDA/archives/archive.mpl?id=1994_1175969 AppleTree closings surprise some/New owners preparing to reopen], ''Houston Chronicle'', January 6, 1994.</ref><ref>[http://www.chron.com/CDA/archives/archive.mpl?id=1994_1177018 AppleTree store sold], ''Houston Chronicle'', January 12, 1994.</ref>  [[Randall's Food Markets]] acquired eleven locations in [[Greater Austin]] and three in [[Greater Houston]]. Eleven stores were sold to [[Kroger]], five stores to [[Gerland Corporation|Gerland's]], four to [[Fiesta Mart]], three stores to [[Rice Epicurean Markets|Rice Food Markets]], and one store each to [[Cox's Foodarama]], [[Big Chief Super Markets]], [[Stanley Stores]], and [[Super Warehouse Foods]].<ref>Hassel, Greg. "[http://www.chron.com/CDA/archives/archive.mpl?id=1994_1175613 AppleTree to hand over most stores this week]." ''[[Houston Chronicle]]''. Tuesday January 4, 1994. Business 1. Retrieved on December 1, 2011.</ref> Some of the former Safeway stores Randall's purchased from AppleTree became part of Safeway once again when Safeway bought Randall's in 1999. One location at 8620 Stella Link became a [[Sellers Bros.]]

As a result of the reduction of stores, AppleTree's northwest Houston grocery distribution facility, which included a {{convert|119000|sqft|m2|adj=on}} refrigerated warehouse, a large bakery and a major milk plant, was larger than AppleTree's needs. The facility was still owned by Safeway, and it was sold to [[H-E-B]].<ref>[http://www.chron.com/CDA/archives/archive.mpl?id=1993_1144252 HEB buys Safeway warehouse/Chain expands in northwest area], ''Houston Chronicle'', July 30, 1993.</ref> As a result, AppleTree would buy its dairy products from a supplier and also relocated its headquarters to a building in northwest Houston.

===Independent chain and closing===
With the sales,  AppleTree would be reduced to six stores; three in Bryan-[[College Station, Texas|College Station]], two in Houston, and one in [[Huntsville, Texas|Huntsville]].  AppleTree chief executive Tony Kubicek purchased the last six AppleTree stores and planned to operate the stores as an independent, Houston-based chain bearing the AppleTree name.<ref>[http://www.chron.com/CDA/archives/archive.mpl?id=1994_1217922 Six stores to keep AppleTree name/Sites seen as seeds for growth], ''Houston Chronicle'', August 4, 1994.</ref>

However, the chain did not fare well &ndash; after closing the lone Huntsville store and one of the two Houston locations, in 1997 AppleTree closed its other Houston location.<ref>[http://www.chron.com/CDA/archives/archive.mpl?id=1997_1425951 Last apple on the Houston tree/AppleTree cuts loose lone store], ''Houston Chronicle'', July 23, 1997.</ref> With the closing, AppleTree operated three stores in Bryan-College Station, where it would eventually relocate its corporate staff.

AppleTree further retrenched to its two Bryan locations after closing its College Station store in 2002.<ref>[http://www.btutilities.com/news/pdfs/200403BTUTCP.pdf Bryan Grocery Stores (PDF)] {{webarchive |url=https://web.archive.org/web/20070203025826/http://www.btutilities.com/news/pdfs/200403BTUTCP.pdf |date=February 3, 2007 }}, Bryan Texas Utilities, March 2004.</ref>  In February 2009, AppleTree sold its Briarcrest Drive store in Bryan to local resident Jim Lewis.  Lewis used the location to open a new grocery store, Village Foods and rehired all of the AppleTree employees who'd been left unemployed by the closing.<ref>{{Cite web |url=http://blogs.houstonpress.com/eating/2009/12/top_5_grocery_store_closings_o.php |title=Top 5 Grocery Store Closings of the Decade &#124; Houston Press |access-date=2014-11-22 |archive-date=2014-11-29 |archive-url=https://web.archive.org/web/20141129161851/http://blogs.houstonpress.com/eating/2009/12/top_5_grocery_store_closings_o.php |url-status=dead }}</ref><ref>{{Cite web|url=http://www.theeagle.com/news/business/village-foods-opens-in-former-appletree/article_8486fac5-142a-5316-b8c3-60da325f3607.html|title = Village Foods opens in former AppleTree| date=19 March 2009 }}</ref><ref>{{Cite web |url=http://www.kbtx.com/home/headlines/41124477.html |title=Village Foods Celebrates Grand Opening |access-date=2014-11-22 |archive-date=2014-12-24 |archive-url=https://web.archive.org/web/20141224142148/http://www.kbtx.com/home/headlines/41124477.html |url-status=dead }}</ref>  The final AppleTree location, in Bryan at Highway 21 and Texas Avenue, closed in early 2010.

There are currently three supermarkets operating under the Apple Tree banner in [[San Diego|San Diego, California]]

==References==
{{Reflist|2}}

==External links==
{{Portal|Texas|Companies|Food}}

{{Supermarkets of the United States}}

{{DEFAULTSORT:Appletree Markets}}
[[Category:Retail companies established in 1969]]
[[Category:Retail companies disestablished in 2012]]
[[Category:Defunct supermarkets of the United States]]
[[Category:History of Houston]]
[[Category:Companies based in Bryan, Texas]]
[[Category:Brazos County, Texas]]
[[Category:Companies that filed for Chapter 11 bankruptcy in 1992]]
[[Category:1969 establishments in Texas]]
[[Category:2012 disestablishments in Texas]]
[[Category:Supermarkets based in Texas]]