Dive Brief:
- Applegreen has terminated its deal with the Massachusetts Department of Transportation to redevelop and operate 18 highway service plazas in the state, a company spokesperson said in a statement to C-Store Dive.
- Applegreen said that “commercial realities” as well as the threat of litigation from competing bidder Global Partners “have jeopardized the project’s timeline and financing.” Dublin-based Applegreen was initially granted rights to the travel plazas in a deal that would see the retailer spend $750 million over the next 35 years.
- This marks a surprising conclusion to the ongoing battle between Applegreen and Global Partners, in which the Massachusetts company has repeatedly accused the Irish retailer and MassDOT of acting in bad faith. Applegreen has denied any wrongdoing.
Dive Insight:
Almost immediately after Applegreen and MassDOT announced their deal in June, Global Partners expressed public frustration at the decision, calling its own pitch more cost-effective and logical since Global Partners is a local entity. In late July, Global Partners called for an investigation into Scott Bosworth, the state official who helped oversee Applegreen’s proposal to MassDOT, citing concern over Bosworth’s past involvement with Applegreen and whether his professional relationships may have impacted MassDOT’s decision.
That frustration escalated in July when Global Partners filed an ethics complaint and requested an investigation into MassDOT’s process. A month after that, Global Partners sued MassDOT for failing to provide documentation from its agreement with Applegreen. The rift reached a climax last week when Global Partners requested a court order to block the deal from finalizing.
With this announcement, the 18 travel plazas in Massachusetts appear to be up for grabs once again.
In a statement to C-Store Dive, Applegreen’s spokesperson said the retailer and MassDOT have officially terminated their ongoing lease discussions amid the difficulties they’ve faced during this process.
“As the largest and most-respected motorway service operator in the United States, Applegreen regrets that it was not able to bring its world-class operating expertise to the Commonwealth,” Applegreen’s spokesperson said.
A spokesperson from Global Partners did not respond by press time when asked to comment.
