A struggling gas station chain now files an unexpected bankruptcy in the U.S. Court for the Northern District of Texas in Dallas.
Financial difficulties were a significant factor in the new owners of SQRL Service Stations filing for Chapter 11 bankruptcy protection.
The gas station chain is seeking to restructure over $1.2 billion in unsecured debt.
Gas Hub LLC, which acquired the chain of gas stations and convenience stores for $17 million in April, primarily owes this debt to Blue Owl Capital, the previous owner of leases for many SQRL locations, according to C-Store Dive.
The company now has more than 350 locations throughout a total of 14 states.
The gas station owner’s attorney Sidney Scheinberg said this week that Gas Hub was “going through the list” to determine how many service stations it owns.
“We’re trying to protect the assets and leases of that business and reorganize it, if possible,” Scheinberg told C-Store Dive.
The Chapter 11 petition was filed on August 16, following an involuntary Chapter 7 liquidation petition submitted on May 13 against SQRL Holdings and its founder, Blake Smith, over millions of dollars in unpaid rent.
In July, attorneys for both parties in the Chapter 7 case filed a joint motion to dismiss it, as SQRL Service Stations intended to pursue Chapter 11, which they subsequently did in August.
However, Judge Bianca M. Rucker denied the motion to dismiss the involuntary Chapter 7 case.
Smith is not involved in the Chapter 11 proceedings.
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Also Read: Another Mall Clothing Retailer Now At High Risk of Bankruptcy
Other Economy News Today
A massive rental company with 34k locations now shuts down its operations after filing for bankruptcy and 22 years in business.
Users of movie rental company Redbox were left saddened after it was announced that it would be shutting down operations.
The announcement comes after the rental company’s parent company, Chicken Soup for the Soul Entertainment, filed for Chapter 11 bankruptcy.
According to court documents obtained by the Washington Post, the Connecticut-based company claimed to be one billion dollars in debt.
As a result, Redbox, which was a staple of many grocery stores including Walgreens, and CVS will be shuttered.
Many fans took to social media to express how upset they were with the loss.
“I knew it was coming, sadly,” UltraVada wrote in a post on X, formerly Twitter.
“It was inevitable,” a second person mourned.
“I knew this would happen when I heard they filed for Bankruptcy but its still sad to hear. I have a lot of fun memories of Redbox,” a third person lamented.
“I still don’t think this will be or ever be the end of physical media as we do still get remasters of some movies in 4k/Bluray.”
One person revealed that they had forgotten the rental service had existed.
Some users were not surprised by the announcement.
“Not surprised since nobody really rents videos anymore with the rise of streaming and what not,” one user admitted.
“Also kinda remember getting into a feud with them on here.”
One user also pointed out that the last remaining Blockbuster, located in Bend, Oregon, managed to outlive Redbox.
Redbox was acquired by Chicken Soup for the Soul Entertainment (CSSE) in 2022 and became one of the company’s flagship video-on-demand streaming services.
At its peak, CSSE operated more than 20,000 DVD rental kiosks across the country.
The company’s filing means that the company’s more than 1,000 employees will be laid off, per The Wall Street Journal.
It was also reported by Deadline that many employees at CSSE hadn’t received their paychecks and had medical benefits cut in late June.
Also Read: This Massive Mall Retailer Is Now Closing In California
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