Dive Brief:
- The U.S. Bankruptcy Court for the Northern District of Alabama dismissed the Chapter 11 bankruptcy case for convenience retail real estate owner Eagles Investments Group earlier this month, according to court filings.
- In a June 12 announcement, Eagles said it reached successful negotiations with its creditors and resolved the "financial uncertainties” that led to its bankruptcy filing in early May.
- Following the dismissal, Eagles has announced plans to build a network of 100 branded gas stations and convenience stores through 2030.
Dive Insight:
Eagles, which owns land connected to 20 c-stores in central and eastern Alabama, filed for bankruptcy after suffering “several setbacks that were beyond its control that caused its revenue to decrease,” according to a May 11 motion. Among those setbacks were new Alabama regulations restricting sales of highly profitable flavored vape products to vape shops only.
Eagles’ bankruptcy case was dismissed because the company didn’t submit proper bankruptcy schedules — a detailed list showing the debtor’s assets, liabilities and other financial information — according to a June 3 court order. However, negotiations with its creditors have allowed the company to move forward with revived growth plans.
Among those negotiations was a settlement with one of its creditors. The company did not disclose the financial details of the settlement, but said it was made on “terms fully favorable to the company’s ongoing debt service.”
“Together with the conclusion of the Chapter 11 process, the settlement with this major creditor represents a comprehensive resolution of the company’s financial obligations and positions Eagles Investments Group, Inc. for unencumbered growth,” the company said in its announcement.
Eagles has linked its creditor settlement with plans to debut its new Nashco banner, which it hopes to expand to 100 c-stores over the coming years. However, the company has not released details on financing or store-level commitments.
In a phone call with C-Store Dive, President and CEO Ali Nasher said Eagles will convert the 20 c-stores it currently controls through land ownership into Nashco sites. He added the company intends to acquire 80 additional locations, with the first Nashco c-store expected to open next month in Alabama.
Although the June 12 announcement stated all 100 locations will be in Alabama, Nasher said this was incorrect, but declined to specify where additional stores will be located.
