Editor’s Note: This story was edited from an earlier version to clarify the details of the agreement.
Brew LLC ceased operations in eastern Iowa in late September, which included 15 leased convenience-store locations in Cedar Rapids, Hiawatha, Eldridge and Davenport, five in Linn County and 10 in Scott County. Brew had signed an operational lease to manage these locations under the Brew convenience-store brand through an agreement with MEX RE-NW-IA LLC and its parent company, Mountain Express Oil Co., which recently declared bankruptcy.
At no time did Brew purchase or acquire these convenience-store properties.
“Brew maintains a highly rated financial standing and will continue to serve as a convenience destination at its 28 locations throughout Iowa with expansion plans underway. Brew remains committed to providing the best modern convenience-store experience to its customers across Iowa,” the company said in a statement provided to CSP.
Mountain Express, Acworth, Georgia, with a network of 166 company-owned convenience stores and 300 dealer-owned customers, filed for Chapter 11 bankruptcy protection in March in an attempt to reorganize the company.
After Mountain Express missed payments to gasoline suppliers, which forced some operators to close their fuel centers, travel centers and convenience stores, Judge David R. Jones, in U.S. Bankruptcy Court in Texas, terminated all of Mountain Express Co.’s real estate leases.
In a series of court orders, the judge converted the filing from Chapter 11 to Chapter 7 bankruptcy, directing Mountain Express to liquidate its assets.
Shortly after Brew began managing these stores, Mountain Express Oil filed for federal bankruptcy protection in Texas. These locations were then purchased by an out-of-state investment group, InCommercial, Chicago, which was not affiliated with either Brew or Mountain Express Oil. Consequently, on Aug. 25, 2023, the bankruptcy court ordered the termination of Mountain Express Oil’s master lease with the out-of-state owners, which included its lease with Brew.
“This unexpected development had significant repercussions for Brew’s lease agreements and rents,” the company said. “Despite Brew’s earnest efforts to negotiate a new long-term lease with the owners of these properties, negotiations ultimately failed.”
InCommercial, the new property owner of all 15 sites, directed Brew to exit the properties.
“Brew extends their heartfelt gratitude to the employees. The support of community members and loyal customers is deeply appreciated,” the company said.
“Brew maintains a highly rated financial standing and will continue to serve as a convenience destination at its 28 locations throughout Iowa with expansion plans underway. Brew remains committed to providing the best modern convenience store experience to its customers across Iowa,” it added.
Donation Decision
Brew donated more than $170,000 worth of merchandise from the affected stores, including food and personal care items, to several eastern Iowa food banks after InCommercial’s termination of Brew’s leases.
“As a company, we were really looking forward to serving these vibrant and dynamic neighborhoods and communities in eastern Iowa,” said Joe Kelly, a spokesperson for Brew. “We were disappointed that we couldn’t come to an arrangement with the new property owners and were forced to vacate these properties.”
With thousands of dollars of inventory remaining in the stores, Kelly commended Brew owner, Inder Singh’s decision to donate most of this merchandise to food banks and nonprofits in the affected communities and surrounding areas to support Iowans in need.
“The Davenport Community School Food Pantry (DCSFP) is overjoyed by the generous donation from Brew that has been given to our guests at the JB Young Opportunity Center over the last month. We had lines of people who were very appreciative,” said Ralph Kelly, director of the DCSFP.
Storm Lake, Iowa-based Brew is a 100% Iowa family-owned company offering coffee, wine, spirits, fuel and convenience items to travelers and Iowa residents.
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