Correction: A previous version of this story misstated facts about LKM’s relationship to Brother’s Food Mart. LKM is a former operator of Brother’s Food Mart c-stores.
Dive Brief:
- LKM Convenience, a former operator of various Brother’s Food Mart c-stores in Louisiana, declared Chapter 11 bankruptcy last week, according to filings with the U.S. Bankruptcy Court for the Eastern District of Louisiana.
- LKM, founded in 2008, is managed by Lenny Motwani, according to the filings. It’s not clear how many Brother’s locations Motwani operated at one point, although he had been the lessee for his locations, Robert Marrero, the attorney representing LKM’s bankruptcy, said in a phone interview last week.
- Brother’s is known around the c-store industry for its association with Mountain Express Oil, which collapsed in a controversial Chapter 7 bankruptcy case in 2023 that continues to impact c-store owners years later.
Dive Insight:
Brother’s, one of New Orleans’ largest c-store chains, drew attention when its roughly 50 locations were acquired by Mountain Express in 2021. Mountain Express planned to introduce the 50-store brand to several new markets, such as Atlanta, Dallas and Memphis, and open as many as 100 more locations. However, those plans dissolved when Mountain Express collapsed in bankruptcy.
In a phone call, Marrero said he hadn’t heard of Mountain Express. Marrero declined to share how many convenience stores Motwani operates today, but said that LKM’s bankruptcy is over one location.
In a statement to C-Store Dive, Andrew Lilly, the attorney representing Imad Hamdan, the founder and owner of Brother’s, said that Motwani and LKM do not currently operate any Brother’s locations. According to court documents shared by Lilly, LKM has been prohibited from operating under the Brother’s brand since late 2011.
Efforts to confirm with Marrero whether or not LKM currently operates Brother’s stores were unsuccessful. A local report from late last year noted that Motwani still operated Brother’s stores, although he is not listed as being connected to Brother’s in his current bankruptcy filing.
According to the Louisiana Secretary of State, Motwani manages 53 different registered businesses, most of which are convenience stores, car washes or restaurants. LKM, according to the registry, is “not in good standing” with the state for failing to file its annual reports. The registry notes that LKM’s last report filed was in June 2023.
Marrero said that LKM’s locations operate under Motwani’s dozens of registered entities. The strategy of using different LLCs for different locations was also used by Mountain Express and associated defunct retailer SQRL — a method that repeatedly confused attorneys handling their bankruptcy cases.
According to LKM’s voluntary bankruptcy petition, the company is in debt for about $3.5 million. Marrero said that LKM’s business was severely impacted by Hurricane Ida in 2021.
