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Grocery shakeup: 12 Rainbow stores to become Cub Foods, Byerly's

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The Rainbow Foods stores in the Twin Cities will all be sold as its Milwaukee-based corporate owner Roundy's initiates its exit from the metro market. Former competitors will purchase the groceries and their inventories.

Supervalu announced that it will work with four other chains — including Lund Food Holdings — to purchase 18 Rainbow Foods stores for approximately $65 million. The Star Tribune notes the scenario will "reorder the Twin Cities grocery market."

The Business Journal reports that 10 existing Rainbow stores will be turned into Cub Foods, bringing the total number of Minnesota Cub stores to 76. Supervalu, which owns the Cub chain, said it expects to make 1,000 job offers. MPR News adds that Supervalu said it will also take over some employee pensions related to the stores it's buying.

The Pioneer Press adds Supervalu is entering into the deal with Jerry's Enterprises, Haug Enterprises, Lund Food Holdings and Radermacher Enterprises.

Lund Food Holdings will purchase the Woodbury and Eden Prairie locations, with plans to rebrand them as Byerly's. Both stores will be extensively remodeled. A statement from Edina-based Lund Food Holdings said all of the Rainbow employees will have a chance to continue their employment.

These 10 Rainbow stores will become Cub Foods stores:

– Chaska, 200 Pioneer Trail
– Eagan, 1276 Town Centre Drive
– Lakeville, 17756 Kenwood Trail
– Minneapolis (Lagoon), 1104 Lagoon Avenue
– Minneapolis (Quarry), 1540 New Brighton Road
– Oakdale, 7053 10th St. N.
– Plymouth, 10200 Sixth Ave. N.
– Roseville (includes stand-alone liquor store), 1201 Larpenteur Ave.
– St. Louis Park (includes stand-alone liquor store), 5370 16th St.
– St. Paul, 892 Arcade St.

These two Rainbow stores will become Byerly's:
– Eden Prairie, 970 Prairie Center Drive
– Woodbury (includes stand-alone liquor store), 7050 Valley Creek Plaza

These six will be sold but will remain under the Rainbow Foods banner:
– Maplewood, 2501 White Bear Ave.
– Minneapolis (Lake Street), 2919 26th Ave. S.
– Plymouth (Plymouth Station), 16705 County Road 24
– Richfield, 140 W. 66th St.
– St. Paul (Midway), 1566 University Ave. W.
– West St. Paul, 1660 Robert St. S.

MPR News created a map to track the changes.

-Red markers = future Cub Foods stores
-Yellow markers = future Byerly's stores
-Blue markers = Rainbow stores under new ownership

Another nine Rainbow Foods locations that aren't listed above will be sold if a buyer can be found, or closed if no one comes forward to purchase them.

Rainbow has historically been the Twin Cities No. 2 grocery chain after Cub, but it slipped to fourth place in recent years. The company has closed five Twin Cities stores in the past 16 months.

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