Red Eagle Oil Puts Its 17 C-stores, Stations on the Market
CODY, Wyo. -- Family-owned convenience store operator, Red Eagle Oil Inc., is looking to sell its 17 gas stations and convenience stores. Sixteen of the locations are in Wyoming, the other is in Hardin, Mont.
The locally headquartered c-store chain has tapped Matrix Capital Markets Group Inc. to market the properties. The sale process is being conducted in accordance with the company's Chapter 11 case in the U.S. Bankruptcy Court for the District of Wyoming.
Red Eagle Oil filed for Chapter 11 bankruptcy in August. In its filing, the company cited the economic downturn and an inability over the past two years to collect some money it is owed. Additional court documents indicated Red Eagle had not been able to pay many of its bills since April, according to media reports. By filing for bankruptcy, the company originally hoped to reorganize, but also said it did not expect to be able to pay its creditors.
Now, the company's real estate is being offered for sale. Fourteen of the 17 locations are company-operated c-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, according to Matrix.
Red Eagle Oil is an Exxon jobber. Nine of the c-stores currently sell Exxon-branded motor fuels. There is no future branding requirement as a condition of the bidding process. The remaining four locations that are currently operating sell unbranded motor fuels.
All of the company-operated stores offer traditional convenience store merchandise, and some of the stores offer hot foodservice. Additionally, three of the stores sell beer, wine and liquor. The Montana location includes a casino operation.
In addition, two of the locations also have a car wash and one location has Burger King restaurant leased to a third-party operator. All of the sites are located along major highways and roads.
Bids may be submitted for individual stores, multiple stores or all of the stores. The stores are being sold free and clear of all liens, claims and encumbrances, according to Matrix.