A REGIONAL chain of convenience stores in the Central West is facing a complete shutdown after the company that owns its premises filed for bankruptcy.
The local chain known as The Store is expected to close all 25 stores by the end of July.
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The company has gas station locations in Wisconsin and Michigan.
Mountain Express Oil, which owns the buildings and land used by The Store locations, filed for Chapter 7 bankruptcy in the fall.
After the bankruptcy, the buildings were sold to a real estate investment company, according to local reports. WSAW, CBS affiliate.
Now this investor does not intend to renew any agreement with The Store, according to the chain’s controller.
However, there is hope for buyers as the company is trying to reach a new deal with the new owners.
“The Store is working to enter into an agreement with the operator to establish a transition so that all associates are hired in their current positions,” the company said in a statement to the industry blog. CSP.
BUYERS’ REACTION
While it’s unclear what will happen to The Store’s operations, some on Facebook mourned the loss.
A local Facebook group based near Menominee and Marinette, Michigan, discussed the closure.
More than a dozen “sad” people reacted to news about the possible shutdown.
“Oh no!” one commented.
Another seemed to suggest that the Lodge was doing well.
“When we were there, it was very busy,” they said.
Others said they hoped Kwik Trip, a regional competitor, would buy them.
US Sun has reached out to The Store’s parent company, Team Schierl Companies, for comment.
How does bankruptcy work?
Bankruptcy is a specific legal process that helps businesses eliminate debts they cannot pay.
The process allows businesses to start from scratch and gain access to new credit.
Overseen by federal courts, bankruptcies allow a company to more easily sell its assets to pay creditors, according to Investopedia.
Chapter 11, a common process for businesses, is used to restructure a business with the goal of staying open — even if it means selling most of the company’s properties.
Chapter 7, on the other hand, sells all of a company’s assets, putting it out of business.
MORE BANKRUPTCY
Chapter 7 bankruptcy usually means the end of a company’s operations, but because the store owner, but not the operator, is going bankrupt, the brand can continue to operate.
However, other companies have completely collapsed after high-profile Chapter 7 filings.
Pirch, a high-end furniture retailer in California, recently filed suit 7 and abruptly closed all of its showrooms.
Buyers said “the wheels have fallen off” at the company, which is now facing legal action.
Other businesses file Chapter 11, meaning they can stay open after some disruption.
Fashion retailer Express recently filed Chapter 11.
Rite Aid closed many locations after a major Chapter 11 filing.
This story originally appeared on The-sun.com read the full story
