CODY, Wyo. -- Red Eagle Oil Inc., a convenience store operator with headquarters in Cody, Wyo., has put its chain of 17 gas stations and convenience stores up for sale; 16 of the stores are located in Wyoming, and one store is located in Hardin, Mont.
The sale is being conducted in accordance with the company's Chapter 11 case in the U.S. Bankruptcy Court for the District of Wyoming, a Morgan Keegan/CSP Daily News Flash reported yesterday.
The company filed for Chapter 11 bankruptcy on Aug. 1, 2011; court documents said it had been unable to pay many of its bills since April.
Red Eagle Oil also sells fuel wholesale as a distributor and hauls condensate, crude oil and other oil field commodities with a fleet of 26 trucks and 60 trailers. The company employs 114 people, including the owners, office staff, store clerks, truck drivers and others.
The company started having problems collecting money from its customers when the economy went sour in 2009, vice president Bryan Hinze said in a court filing at the time. Red Eagle then began "factoring" the accounts it was owed--selling debts to a third party in return for a smaller amount of immediate cash.
Company officials say they tried to negotiate "reasonable payment plans" with its vendors and creditors, and they hired a real-estate agent to help sell some of the company's property; however, those efforts did not resolve the company's "liquidity and cash-flow crisis" (see Related Content below for previous CSP Daily News coverage.)
Red Eagle is an Exxon jobber. Nine of the Stores currently sell Exxon-branded motor fuels. There may be an opportunity for a prospective buyer to become an Exxon jobber if they choose to retain the Exxon brand; however, there is no future branding requirement as a condition of this bidding process, said Richmond, Va.-based Matrix Capital Markets Group Inc., which is managing the sale for Red Eagle through a structured sale process.
The remaining four stores currently operating sell unbranded motor fuels. All of the company-operated stores offer traditional c-store merchandise, and some offer hot foodservice. Additionally, three of the locations sell beer, wine and liquor.
The Hardin location includes a casino operation. Two of the locations also have a car wash, and one has a Burger King restaurant leased to a third-party operator.
The average c-store size is more than 3,200 square feet, and the average property size is approximately 1.8 acres.
All of the stores are located along major highways and roads.
The real estate is being offered as part of the sale for all of the stores; 14 of the stores are company operated convenience stores, two are currently operating as unattended fueling sites, and one is closed. The two unattended sites have convenience store buildings on the properties that are currently closed, but can be reopened by the buyer.
Bids may be submitted for individual stores, multiple stores or all of the stores. They are being sold free and clear of all liens, claims and encumbrances. The bids are due April 4, 2012. Contact Vance Saunders, (804) 591-20397, vsaunders@matrixcmg.com or Cedric Fortemps, (804) 591-2039, cfortemps@matrixcmg.com.
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