The Wisconsin convenience store chain, The Store, will close all 25 locations by the end of July due to the bankruptcy of its property owner, Mountain Express Oil.
Established in 1976, The Store is closing all locations after Mountain Express Oil filed for Chapter 7 bankruptcy.
According to Daily Mail, this decision affects all The Store’s locations in Wisconsin and Michigan. Despite the impending closures, efforts are underway to ensure that current employees will retain their jobs with the new operator.
Mountain Express Oil's Chapter 7 bankruptcy filing means that its assets, including the properties leased by The Store, will be liquidated. This differs from Chapter 11 bankruptcy, which focuses on reorganization. The land and buildings are being sold to a property investment company, which has decided not to extend The Store’s operating agreement.
Team Schierl, The Store's parent company, has proactively coordinated with the potential new operator to ensure a smooth transition for employees. According to WSAW-TV, Team Schierl "is working with the next operator to ensure current employees will be hired in their current roles after the transition."
The new operator might be a national gas station chain such as Chevron, which could bring a different brand and operations to these locations. The transition is expected to be seamless for employees, ensuring minimal disruption to their roles.
The Store has been a staple in its communities for nearly five decades, providing convenience and service to local residents. The closure will undoubtedly impact the employees and patrons who have come to rely on these stores. However, the priority remains on securing employment for current staff.
The wider retail sector has been experiencing significant challenges, with nearly 2,600 store closures across the United States in 2024 alone. Major retailers such as Macy's, Walmart, Walgreens, and Foot Locker are among those that are reducing their physical presence. Discount stores like Family Dollar and 99 Cents Only and drug stores like CVS and Rite Aid have also been heavily impacted.
If the current trend continues, projections indicate that up to 7,800 stores could close by the end of the year, marking a 40% increase from the previous year. The competitive pressure from online retailers has significantly contributed to the struggles of brick-and-mortar stores.
Recent bankruptcies in the retail sector further highlight these struggles. BurgerFi is currently considering Chapter 11 bankruptcy, while Red Lobster has already closed nearly 100 locations and may shut down up to 135 more. Foxtrot and Express have both filed for bankruptcy and announced substantial closures.
Despite these challenges, the focus remains on supporting the employees affected by these closures. Team Schierl's efforts to collaborate with the new operator aim to provide stability and continuity for the staff during this transition period.
The property investment company's plans for the acquired land remain uncertain. They might choose to develop the land or bring in a new operator, which could lead to a resurgence of business activity in these locations under a different brand.
In summary, The Store's closure due to Mountain Express Oil's bankruptcy is part of a larger trend of retail struggles in 2024. Team Schierl's efforts to ensure employee retention with the new operator highlight the importance of supporting the workforce during such transitions.
