The news follows the Chapter 11 bankruptcy reorganization filing [image-nocss] of Ogden, Utah-based Flying J because of near-term liquidity isues brought about by the precipitous decline in oil prices coupled with the disruption in the credit markets. (Click here for CSP Daily News coverage.)
The Appco rep referred Patel to another distributor, Coffman Distributor, in Johnson City. "For the past three times we've been getting gas from them," said Patel.
In October of 2007 Titan Global Holdings purchased Appco. (Click here for previous coverage.)
Major suppliers such as Conoco, Sunoco and CITGO supply gasoline to the company, said the report.
WJHL asked CITGO spokesperson Fernando Garay it Titan has run out of credit with CITGO and did CITGO cut it off? "We have no comment," Garay responded.
Appco president and CEO Marty Anderson offered a similar response to WJHL. "This is an internal business matter, and I don't think it would be appropriate to comment," he said.
James Cordier, a gasoline market expert with the Liberty Trading Group, said some gasoline distributors suffered historic losses this year. "When we were in June and July, when oil was at $140, they were truly losing money," Cordier told the news outlet.
Appco spokesperson Blois Olson said the company will survive, despite dramatic changes. "A drop in oil prices and changing credit markets have caused some challenges, but it won't impact the viability of this business," he told WJHL.
In August, Richardson, Texas-based Titan Global reported more than $418 million in total revenue, but had a net loss of $52 million, according to the report.
Curt Alexander, a Certified Financial Planner, said observers must look at the big picture.
"Negative $52 million may seem alarming to us, but to a larger company like your Wal-Marts, your Exxons, $52 million is nothing," he told the news outlet.
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