Kum & Go re-focusing on larger store format: Store to be sold in sealed bid auction
Kum & Go, one of the nation's leading convenience store chains, has announced that it has retained The Energy Exchange of Chicago to coordinate a sealed bid auction of 21 Kum & Go stores. The sealed bid auction will include the West Fargo store located at 1201 9th St. E. In all, the auction will include 12 locations in Iowa, three in South Dakota, two in North Dakota, along with one store in the states of Missouri, Montana, Nebraska and Wyoming.
Last August, Kum & Go began the process of divesting itself of smaller locations and stores outside of their core markets in an effort to focus on increasing their number of larger format C-stores. Kum & Go is focusing on developing better efficiencies in its infrastructure as well as creating a stronger asset base.
"Our company is committed to carefully-planned, strategic growth leading in the direction of making Kum & Go the No. 1 convenient retailer," said Kyle J. Krause, Kum & Go president and CEO. "It is our desire to consolidate and strengthen our asset base and offer a consistent brand to our customers in Kum & Go's core markets. The sale of these properties is a step in the right direction for our company."
The sale of the 21 store locations is anticipated to parallel with the construction of a record number of new stores to be built throughout the 12 state core market area that Kum & Go operates in. Kum & Go has opened seven new locations in Oklahoma, South Dakota, Colorado and Nebraska in 2008, and plans to build 27 additional stores before the end of the year.
According to Mark Raccuia, executive vice president of The Energy Exchange, "These stores are located in smaller cities and towns and present ideal opportunities for individual owner-operators as well as first-time operators to purchase profitable convenience stores and run their own business."
Bidders may bid on one, some, or all of the stores. The bid deadline is Tuesday, June 24, 2008. To obtain a list of the available stores, contact The Energy Exchange in Chicago at 866-906-7499. The Energy Exchange is a commercial real estate firm specializing in the sale of service stations and convenience stores nationwide.
Kum & Go is the 21st largest convenience store chain in the United States. The family-owned company began in 1959 in Hampton, Iowa, and has grown to more than 430 convenience stores in 12 states (Iowa, Arkansas, Colorado, Minnesota, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Dakota, Wyoming and Wisconsin).
For more information about Kum & Go, visit www.kumandgo.com.