Festival Foods said on Thursday it was buying two Gordy’s Markets in Eau Claire and a third location in Tomah.

The announcement comes the same week as Gordy’s Market announced it was closing a store in Hayward.

“The acquisition is subject to customary closing conditions and is expected to close in September. Following the acquistion, all three locations will be operated under the Festival Foods banner,” Festival’s press release said.

The stores Festival said it is buying include Gordy’s locations at 2717 Birch St. and 2615 N. Clairemont Ave. Festival’s announcement did not mention a third Gordy’s location in Eau Claire at 3310 E. Hamilton Ave., which is close to Festival’s current store which it opened in 2005.

Over the past two years, Gordy’s has grown dramatically, having over 20 stores stretching from Hayward to La Crosse. That expansion includes taking over the Hamilton Avenue location that was a Copps store, and buying the N. Clairemont Store from Mega Foods.

But the Hayward store’s closing signaled a new era for Gordy’s, a drawing back from expanding. Some action was widely anticipated.

“The Gordy’s organization is currently in the midst of a restructuring of their business. This includes the divestiture of their business. This includes the divestiture of the Hayward location to reach a level of deeper performance and customer engagement with the remaining stores,” Gordy’s said in a press release this week.

Jeff Schafer, the company’s CEO, said: “It’s time to get back to our roots and operate a smaller organization with the highest level of service to our communities.”

In March, a Minnesota company, EGP, filed a lawsuit in Chippewa County Court seeking $38,665 from Gordy’s Market. David Schafer, of Gordy’s, said at the time his firm had switched vendors and paid EGP. The lawsuit was dropped.

The Festival news release Thursday also did not mention the fate Gordy’s two locations in Chippewa Falls and one store in Lake Wissota. Attempts to reach Gordy’s Market officials for comment Thursday afternoon were unsuccessful.

“We look forward to becoming part of the Tomah business community and welcoming new guests there. We’re also excited to open two new stores in Eau Claire, which will give our guests in that town more options,” said Mark Skogen, president and CEO of Festival Foods.

Festival Foods operates 28 full-service supermarkets across Wisconsin.

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