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Gas City on Ice

Bankrupt owner looks to sell Creamery ice cream chain to son
CHICAGO -- William A. McEnery, whose father owns the Gas City chain of gas stations and the Creamery chain of ice cream parlors in the Chicago area, is offering to buy the ice cream parlors for nearly $3 million out of the bankruptcy of his father's company, reported The Wall Street Journal.

William J. McEnery's trust, which filed for Chapter 11 protection last October, owns the Gas City chain of gas stations and truckstops in Illinois, Indiana, Florida and Arizona.(Click here for previous CSP Daily News coverage.)

The trust also owns the Illinois-based Creamery chain of seven ice-cream stores that is home to the Rainbow Cone, stacked with five colorful scoops of ice cream.

The Gas City assets went on the auction block March 2; McEnery is turning his attention to the Creamery chain. While the trust's bankruptcy attorneys said in court papers that they have not actively sought buyers, a number of parties have expressed interest in acquiring the purveyor of soft-serve ice cream cones, sundaes and milk shakes, the report said. Attorneys said the best bid received to date comes from McEnery's son, but they are seeking to test his $2.975 million offer at auction to make sure they can get the best possible price.

Under the proposed auction rules the trust's attorneys filed with the U.S. Bankruptcy Court in Chicago last Tuesday, rival bids must come in by March 25 ahead of a March 28 auction, said the report. They want the court to consider approving the winning bid at a sale hearing following the auction or the next day."In order to maximize value and ensure a successful result in these Chapter 11 cases, a prompt and orderly sale of the Creamery assets must take place," attorneys wrote, according to court documents cited by the Journal.

Bankruptcy Judge Eugene R. Wedoff must first approve the auction rules, and attorneys are asking him to do so at a March 8 hearing, the report added.

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