Dive Brief:
- Brew, an Iowa-based c-store chain, was forced to cease operations at 15 stores in eastern Iowa after it was unable to negotiate new leases for the locations, according to a company press release.
- Brew, which had an operational lease to run the locations, said in the release that it attempted to renegotiate the leases with investment group InCommercial, which purchased the properties from now-bankrupt Mountain Express Oil, but was unable to reach an agreement.
- In the wake of being ordered to leave the properties, Brew donated $170,000 worth of unsold inventory from those stores to HACAP Food Reservoir in Hiawatha, Iowa, and the River Bend Food Bank in Davenport, Iowa.
Dive Insight:
The 15 sites that Brew operated were owned by MEX RE-NW-IA LLC, a subsidiary of Mountain Express, which had all its leases terminated by a judge in August as part of Chapter 7 bankruptcy proceedings.
The affected locations, which were located in Cedar Rapids, Hiawatha, Eldridge and Davenport, closed in mid-September after Brew was unable to reach a deal with investment firm InCommercial.
"As a company, we were really looking forward to serving these vibrant and dynamic neighborhoods and communities in Eastern Iowa," said Joe Kelly, a spokesperson for Brew, in a separate press release. "We were disappointed that we couldn't come to an arrangement with the new property owners and were forced to vacate these properties."
Mountain Express’ bankruptcy has impacted a number of retailers, both before and after it officially ceased operations. The company had trouble supplying fuel to all the stores it contracted with, leading some to nearly close their doors temporarily and seek permission to buy gasoline from other sources.
In the wake of the company terminating operations, a number of stores have closed, including these Brew stores and 19 Pilot-branded locations.
Storm Lake, Iowa-based Brew operates 28 locations across Iowa, with plans in place for more, according to the announcement. It uses Sinclair’s Dinopay mobile app and the Brew Rewards platform for all of its locations, according to the retailer’s website.
