LAVAL, Quebec -- Alimentation Couche-Tard Inc’s stock climbed nearly 5% following a three-day dip after the Canada-based operator of convenience stores and gas stations issued a press release indicating that an April 24 bankruptcy filing by a company known as The Circle K Corp. is not related to Couche-Tard’s Circle K subsidiary and has no link to the company.
Couche-Tard said that it learned a court document had been filed before the U.S. Bankruptcy Court for the District of Arizona pursuant to a proceeding under Chapter 11 referencing to The Circle K Corp., et al. The retailer said it could be misinterpreted and confusing to investors who could mistakenly believe the filing referred to Couche-Tard’s U.S. convenience-store chain.
To complicate matters, The Wall Street Journal also published a legal notice about the “Circle K” bankruptcy in its April 28, 2015, edition.
“In relation to such recent publications, Couche-Tard would like to confirm that the legal entity referred in the court documents and in the Wall Street Journal is not a subsidiary of Couche-Tard, nor does it have any link to Couche-Tard,” said the statement.
As of February 1, 2015, Laval, Quebec-based Couche-Tard's network comprised 6,314 convenience stores throughout North America, including 4,870 stores with fuel dispensing. Following the acquisition of The Pantry Inc. on March 16, 2015, more than 1,500 additional stores were added to the network in the United States, totaling 7,815 convenience stores. Its North-American network now consists of 13 business units, including nine in the United States covering 41 states and four in Canada covering all 10 provinces.
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