Fas Mart Courts Suitor

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Fas Mart Courts Suitor

09/13/2002
RICHMOND, VA -- Fas Mart Convenience Stores Inc., the once thriving chain that dashed like a comet to prominence then quickly fell into disarray and ultimately into bankruptcy, may have a possible suitor.

GPM Investments LLC has bid nearly $50 million -- $39 million for assets and $10 million for inventory -- to buy the 169-unit operation, which filed Chapter 11 bankruptcy last year, reported the Richmond (Va.) Times Dispatch.

A federal bankruptcy court judge will decide what the bidding procedures should be. Interested suitors have until Sept. 26 to bid, the newspaper said, adding that if other bids are made, an auction will be held Sept. 30.

Fas Mart's demise is a bit startling when considering its roots. Eleven years ago, its colorful chief executive Oais Dagra took a 13-store chain and in a matter of years grew it to nearly 200 units. But by early last year, a harsh economy and poor financial moves, including over-borrowing from securitized lenders, caught up with Dagra.

In May this year, Dagra resigned as chairman, president and chief executive, the same day a federal bankruptcy judge appointed a trustee to oversee the chain's operations.