Provigo’s latest move was in response to a $200 million lawsuit filed by the 21 Loeb franchisees – including the Cairns, Williamson and Blind River Loeb operator Paul Monette – who are suing the parent company claiming they were being saddled with high costs and low retail margins.
The Sault Star
August 24,1996
Loeb employees rally for local owners
Signs of support
Michael Verdone
STAFF take to the street to boost their bosses who are in danger of losing thier franchise; Ray Guzzo (Right), who works in the Loeb Golden Mile Bakery brought his dog Jessie to the demonstration.
About 30 Golden Mile Loeb employees expressed their support Friday afternoon for store operators Larry and Judy Cairns, and their opposition to any move Provigo Inc. – the store’s parent company – may make to takeover the local grocery store.
The employees, most of whom had completed their shifts for the day or were on their day off, held up sign along the store’s Great Northern Road boundary asking motorists to “Honk” if they support the Cairns.
“We don’t want a corporate takeover. We’re one big happy family,” said head cashier and organizer of the 30-minute rally, Shelley Bordin. “We don’t need anyone coming in here and messing that up.”
The Cairns and Korah Road Loeb operator Mike Williamson are two of 21 Loeb franchisees in northern and eastern Ontario who are facing the possibility of being squeezed out of business by Provigo Inc. and its Loeb Inc. division.
The local operators are two franchisees who have been told by Provigo that their franchise agreements will be cancelled on Nov. 2 because of debts they have incurred with the company.
Provigo’s latest move was in response to a $200 million lawsuit filed by the 21 Loeb franchisees – including the Cairns, Williamson and Blind River Loeb operator Paul Monette – who are suing the parent company claiming they were being saddled with high costs and low retail margins.
Local store operators believe the Ontario franchisees are particularly vulnerable to Provigo’s latest move because there is no legislation in the province that protects them.
Last week Williamson said in the past 18 months Provigo has taken over operations at 47 of the 111 Loeb franchise stores, replacing the franchisees with corporate managers. He said the corporate takeovers resulted in 400 job losses.
“To them we’re just a number,” Bordin said, who has worked at the store since it opened in June, 1989.
“If they take Larry and Judy away from this store they’re not going to have the customers, and the service will be gone because big companies only want more money,” said cashier Donna McArthur.
A large number of motorists honked continually to show their support for the demonstrators and the joint operators.
Often their horns brought cheers from the demonstrators who were spread out along the road from McNabb to Bruce Street.
Last week Provigo vice-president Marie Bernier said most of the 19 current owners facing termination agreements would be replaced with other franchisees, not corporate ownership.
But earlier this week Sault Mayor Steve Butland expressed his concerns about the implications of a corporate takeover, saying if franchise agreements are cancelled by Provigo, layoffs could follow.
Butland met with 10 other mayors at the annual Association of Municipalities of Ontario conference in Toronto to discuss ways of helping the franchisees retain their stores.
He said municipal councils will be asked to pass a resolution at its regular meeting on Monday.
The employees at Friday’s rally said that over the years the Cairns have supported numerous local charities and built the store into a friendly place that provides good service to its customers.
They were not about to let Provigo muscle the Cairns from their store.
“We want to show Provigo that we’re not going to back off,” said Randy Piazza, who has also worked at the store since it opened. “Larry and Judy have been too good to us.”
Bordin said since last Saturday about 700 people have signed a petition opposing a corporate takeover and supporting the Cairns, which will be presented to Butland, Sault MPP Tony Martin and the president and board of directors of Provigo.
Many customers have expressed their support for the local Golden Mile operators, she added.
“They’re saying if Larry and Judy go, they’ll go too.”
Loeb golden Mile employs about 130 full and part-time staff, while about 100 full and part-time people work at Korah Road Loeb.
Meanwhile Robin McArthur, the Sudbury-based Canadian director of the Retail Wholesale Union, said earlier this week that none of the 400 jobs eliminated at stores taken over by Provigo in recent months were union positions.
The Elliot Lake Loeb store, which went corporate last year, has not laid off any union members, he said.
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Risks: Lawsuits, group, Grocery, Loeb, Provigo Inc., Franchisor takes franchisee stores, Termination of franchisee, mass, Protest, rally and demonstration, Canada, 19960824 Loeb employees
