TULSA, Okla. - An Iowa convenience store chain outbid oil giantSinclair Petroleum Corp. in a bankruptcy auction Tuesday to buynearly all the assets of Git-n-Go Inc. for more than $13million.
Des Moines-based Kum & Go obtained 76 convenience stores inOklahoma and Missouri plus their inventories, pushing the storetotal for the unit of privately held Krause Gentle Corp. to about450.
The purchase will expand Kum & Go's annual revenues to morethan $1 billion and increase its presence in the two states, whereit previously had just 15 stores, said chief executive W. A. BillKrause.
"We all know that if Sinclair wanted them, we would have beenthe proverbial fly on an elephant's ear," Krause said. "Theyobviously had a number in mind."
Kum & Go and Salt Lake City-based Sinclair exchanged growingbids for about 10 minutes before Kum & Go's offer of $9 millionplus the roughly $4 million inventories prompted Sinclair's PeterJohnson to bow out.
Johnson had no comment when leaving the U.S. Bankruptcy Court inTulsa.
The sale marks the end for Tulsa-based Git-n-Go, which openedits first store in Tulsa in 1958. The company filed for bankruptcyin late January after losing $8 million in 2003.
The chain, owned by grocery distributor Hale-Halsell Co., whichfiled Chapter 11 in March, subsequently closed 38 stores and laidoff hundreds of workers.
Krause did not know when the 76 Git-n-Go stores would beginbearing Kum & Go signs, but the company hopes to close the salein time for the key Fourth of July weekend. The sale is to close byJuly 7.
The purchase represents a $2.2 million premium over the highestbid entering the auction, Sinclair's offer of $6.8 million plus theinventories.
Privately held Sinclair, which operates 200 stores nationwide,wanted the stores to expand its presence in two markets near thecompany's petroleum refinery in Tulsa, the company has said.
Proceeds from the sale will be used to pay off Git-n-Godebts.
"This was a wonderful result for the creditors of this estate,"U.S. Bankruptcy Judge Dana L. Rasure said.
Krause said Kum & Go may have to close some of the storesit's purchased because of "excessive rent" in the store leases. Buthe said he hoped to negotiate concessions from landlords to preventmore closings.
"What we'd like to do _ we've interviewed every employee atevery store _ we'd like to extend an offer to all of their peoplewho have a desire to work for us," he said.hello there & you too
