BLOUNTVILLE, Tenn. -- Appalachian Oil Co. has experienced a series of problems in recent months that has observers wondering whether the company might be in its final days. According to a report Saturday by The Bristol Herald Courier, Appco gas stations and convenience stores are ending their business days five hours earlier than usual, closing at 6:00 p.m. instead of the standard 11:00 p.m. This change follows recent gasoline supply disruptions and the halting of lottery sales in late December.
Executives with the Blountville, Tenn.-based Appalachian Oil are not talking now [image-nocss] about the situation. On Friday, a Herald Courier reporter was asked to leave Appco headquarters.
"I've got 14 other people I'm helping right now. I don't have time to talk to you," an Appco employee who did not identify himself told the reporter. The unidentified official pried the reporter's fingers from an open door, the newspaper said.
The only comment came from the receptionist who initially greeted the reporter. When asked if Appco was folding, she responded: "No. We are not going out of business."
Appco c-store division President Rick Jones fielded one call from the Herald Courier on Friday, taking a message and promising to pass it on. The call was not returned by presstime. An email sent to Appco's parent company, Titan Global Holdings in Richardson, Texas, also was not returned. Titan Global took over the 55-store chain in September 2007.
Recent calls to Appco executives by CSP Daily News have not been returned.
On December 23, Appco president and CEO Marty Anderson told WJHL-TV, that the ongoing problem was "an internal business matter, and I don't think it would be appropriate to comment." On January 8, Anderson told WJHL there were "no intentions of selling Appco."
He also mentioned a cash infusion that was to happen either January 12 or 13 and would allow the company to restock its fuel and store supplies; however, orange and yellow bags remained slung over many Appco gasoline pump handles Friday afternoon, the report said.
Anderson recently told The Kingsport Times-News that he is hoping the cash infusion will result in gasoline flowing within 24 hours of the money hitting Appco's bank, with other scarce products (including lottery tickets) back to normal within a week inside the stores, where shelves have grown emptier by the day.
The recovery effort will include restoring vendor relationships that Anderson admitted Friday had become "strained" of late as Appco became unable to pay all its bills. He described the Tennessee Lottery's removal of its products as "due to nonpayment of a small invoice" and said the lottery would be reinstated in the 24 Tennessee stores upon completion of the refinance.
The trouble began early in December, and by mid-December, Appco had suspended the contracts of dozens of independent c-stores for which it normally provides gasoline.
"The profitability and viability of this company is very strong," Anderson said on December 24. "We had a very good year, but our lines of credit have been squeezed down by our lender because of their difficulty getting credit."
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