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FINDINGS OF FACT2
Petitioner, Brazoria County Stewart Food Markets, Inc., was
incorporated in Texas on March 27, 1981. Petitioner’s place of
business at the time the petition was filed was Brazoria, Texas.
Petitioner, a subchapter C corporation, operates grocery stores.
Vernon Stewart (Stewart) is petitioner’s chief executive officer
and sole shareholder. Stewart founded petitioner as a sole
proprietorship in 1975, after his purchase of a small grocery
store. The first grocery store was successful, and within a year
two additional small grocery stores were acquired. After a loss
of business due to competition, the first store was closed.
Petitioner operated as many as five small grocery stores at one
time. Ultimately, only the two most profitable stores were
expanded into supermarkets and survived.
Grocers Supply Co. (Grocers), a large wholesale distributor
of grocery products to independent grocery stores in and around
Houston, Texas, was petitioner’s primary supplier of grocery
products. In addition to its business as a distributor of
grocery products, Grocers frequently made loans to its customers
for working capital, store renovation, expansion, and other
purposes. Grocers’ loans were made at competitive rates and were
normally secured by the borrower’s inventory, furniture,
2 The parties’ stipulation of facts and exhibits is
incorporated herein by this reference.
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