Marsh Supermarkets CEO Joe Kelley resigned Tuesday, and the Fishers-based chain launched a search for its third chief executive in a little more than a year.
Kelley, a veteran of New York-based Price Chopper Supermarkets who took the helm at Marsh in May 2011, left to become president of the New England division of Stop & Shop, a 375-store grocery chain owned by Dutch food giant Ahold.
Marsh named Chief Operating Officer Bill Holsworth, who joined the company in 2006, as its interim CEO.
Florida-based Sun Capital Partners, which owns Marsh, has launched a national search to select a new leader for the chain of 70 Marsh stores and 26 MainStreet Markets in Indiana and Ohio, the statement said.
Marsh has struggled to restore market share it has lost over the years to its primary rival, Kroger Co., along with newer grocery offerings from the likes of Walmart, Meijer and Target. At last check, Kroger had local market share of 27.5 percent, compared to Marsh's 16.5-percent share.
Sun, which acquired the floundering supermarket chain in 2006, tried to sell it a few years ago but couldn't find a buyer. That's when it brought in Kelley, who told IBJ for a September 2011 story that turning around Marsh was a three- to six-year project.
Kelley launched a new competitive pricing strategy and plotted a revamp of the chain's Fresh Idea loyalty program. He vowed to spend $60 million over three years to build up to 10 new stores and remodel several more. He also hired another former Price Chopper exec, David Siegel, in the newly created position of senior vice president of merchandising and marketing strategic initiatives.
In January, Kelley joined Mayor Greg Ballard to announce the chain's plans to build the first new Marsh store since 2004, as the anchor of an $85 million mixed-use development bounded by Michigan Street, Capitol Avenue, Vermont Street and Indiana Avenue.
It appears the company still plans to build the downtown store. Holsworth, the interim CEO, in the statement said he looks
forward to implenting "very strong growth plans for the future, including a new state-of-the-art store we are building
in downtown Indianapolis."
Holsworth previously held CEO positions with Lowe’s Food Stores in North Carolina, Finast Supermarket ST in Ohio, and
S&H Green Stamps in New York City.
Kelley replaced Frank Lazaran, who left Marsh in April 2011 after a five-year stint as CEO.
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It makes me sad that they had a great, loyal customer base which as a manager and employee, loved like a second family. But the company was going down the tubes, so to speak, ever since sun capital took it over.
Morale is low for several reasons:
-Every experienced employee was either forced out or, demoted to save on overhead.
-New programs within the Meat Dept. that constantly shot the department in the foot everyday it opened.
-Slashing of benefits
-Keeping employees indefinitely as "part time" to deny any benefits
In my personal experience, I was scheduled to receive vacation pay, which I accrued over the years and they refused to pay it. So I gave them the "take this job an shove it" approach and haven't looked back since.
Many people commenting mention the customer service as the main reason but when you treat your employees as thieves (while it is management who is really robbing the employees) how do you expect people to get excited to go to work in the morning??? What is there to look forward to?
I will miss the co-workers who I've shared a decent amount of time with but Marsh is not Marsh anymore.
-Acquire a business with minimal cash.
-Leverage all of its property with as much debt as possible.
-Keep the cash, which is many multiples of your original investment.
-Cut wages, people and investment in the company by hiring outside management whose only incentive is to cash out.
-String out your vendors.
-Struggle along with a huge debt load until you sell the company to the next pumper and dumper or declare bankruptcy.
For further details, see Romney, Mitt.
Jack
I like shopping there however, because most of the stores are empty and there are no lines. Something is up! I can't believe they are still in business.
All they care about is $ now.