Dive Brief:
- The Krause family is exploring a sale of its Kum & Go convenience stores, Reuters reported Tuesday.
- A source familiar with the matter confirmed the accuracy of the report to C-Store Dive. The Des Moines, Iowa-based retailer is working with JPMorgan Chase & Co. to explore a number of options for the chain, including a potential sale of its assets — valued at $2 billion — refinancing, real estate leasebacks or other forms of recapitalization.
- This news comes amid a wave of growth for Kum & Go, which expanded into Utah and Michigan over the past eight weeks and detailed plans to open more than 50 stores in Detroit over the next several years.
Dive Insight:
The source familiar with the matter said there’s no confirmed timeline of when a sale of Kum & Go’s assets might occur, while the Reuters report noted that a sale is not guaranteed.
News of Kum & Go exploring a sale coincides with Blackburn, U.K.-based EG Group also potentially selling off its U.S. assets, which became a point of speculation earlier this year.
If both retailers end up putting their U.S. stores up for sale, it would result in over 2,200 stores in more than half the country’s states becoming available for purchase — likely causing enormous ripple effects throughout the c-store industry.
A spokesperson from Kum & Go said the retailer does not comment on rumors and speculation.
Although Kum & Go has recently expanded into new markets and opened more stores, the retailer sold 14 sites in Missouri last year to Harrison, Arkansas-based White Oak Station, and closed all but one of its urban walk-up stores in December.
Founded in 1959, family-owned Kum & Go has grown into one of the largest and most notable c-store chains in the Midwest, operating more than 400 stores in 13 states. It is part of the Krause Group, which also owns an Italian soccer club, wineries, logistics companies and other businesses.
