Photo by Jim Muchlinski Tom and Jim Hey are selling Southwest Coaches of Marshall effective Aug. 1. Their buyer, The Reliant Company, is based in Hastings and has 18 business locations

MARSHALL – After 52 years, the Southwest Coaches bus service of Marshall is about to see a changing of the guard.

Tom and Jim Hey agreed to sell Southwest Coaches to The Reliant Company of Hastings effective Aug. 1. Reliant has 18 locations, mostly in Minnesota.

Tom Hey’s retirement as director of the buses will be immediate. Jim Hey, who is in charge of the office, plans to stay on for a limited amount of time to help new managers with the start of Marshall’s school year.

Tom Hey said they had opportunities to retire in recent years since several companies expressed interest in buying the business.

“Up until now it was never the right time,” he said. “Either the timing wasn’t right or we felt the company might not be a good fit for Marshall. By selling to Reliant we can retire with confidence.”

He said Reliant is large enough to easily keep pace with changes in bus industry regulations. It has a human resources department, information technology employees and other helpful components that a smaller bus company can’t afford.

Additionally, they said Reliant has pledged to take care of the 90 employees at Southwest Coaches, 55 of whom work in Marshall.

“We wanted a buyer who would take care of our staff and our customers,” Jim Hey said. “We hope they do more than just sustain the business. We’d like to see it grow.”

The existence of Southwest Tour and Travel became important to the purchase agreement, since it will give Reliant a chance to branch out into a new aspect of the transportation industry.

“They didn’t have a tour company and we did,” Tom Hey said. “The saw it as an opportunity. It was something we could bring to the table.”

“Bringing Southwest Coaches into our fold is an incredible opportunity for us to extend the Hey family’s legacy and allows us to continue the trusted, reliable service this community expects,” said Tom Nightingale, CEO of Minnesota Coaches. Based in Hastings, Minnesota Coaches is a Reliant Transportation Group company.

“We’re honored to help owners such as Tom and Jim find their path to retirement and we appreciate their trust as we begin the next chapter of Southwest Coaches,” Nightingale said. “We will keep the names the community has come to know and trust on the sides of the school buses, there will be no changes to the routes served and the established service centers will continue to operate with the current teammates. We look forward to supporting and investing in the hardworking local teams so they can provide the safe service that students and families can depend on.”

Southwest Coaches began in 1956 as Nelson Bus Service through an agreement with the Marshall School District. At the time, country schools were closing down, which created the need for bus transportation to bring children and teenagers into the nearest town.

The name was changed to Southwest Coaches in 1965 when Gordy Nelson entered into a partnership with Morg Wigley.

Tom and Jim’s uncle, Chuck Hey, purchased the business in 1974. Their father, Marv Hey, became the manager. Their mother Jan Hey joined the business in 1975 when the company launched Southwest Tours.

Marv and Jan bought the business in 1986. Tom and Jim have been the owners since 2000.

They said their two greatest challenges as owners were the 2018 fire and the COVID crises. After bouncing back from the fire, they were almost immediately confronted with the COVID situation.

The fire started in an oil heater and spread throughout most of the bus garage when firefighters opened garage doors. Four buses were destroyed.

Of the rest, 24 were housed in what was left of the bus garage and 30 were stored elsewhere. The office was moved to the Anton Chevrolet building at the east end of Marshall on Minnesota Highway 19.

“We would have quit if we’d have had to leave all the buses outside,” Tom Hey said. “With the availability of indoor storage we never thought about quitting. We just kept going.”

Southwest Coaches never missed a route or an activity immediately after the fire. Tom and Jim said it was proof that their employees are outstanding.

In retirement they plan to spend more time with family. Marv Hey lives in Willmar at the age of 89. Tom Hey plans to enjoy being a grandfather and wants to volunteer, especially with outdoor activities.

“My family was always second,” Tom Hey said. “Our business family was first and foremost. Now that I’m retiring I have a chance to change that.”

Jim and his wife plan to travel and to build a home on Lake Hendricks. The brothers said they have many great memories of Southwest Coaches, particularly the relationships they built with employees and customers.

“We’re very thankful to the Marshall community,” Jim Hey said. “They’ve definitely been good to us. It’s been an awesome ride. Now it’s time to get off the bus. It’s someone else’s turn to drive.”

— Deb Gau contributed to this report