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FORT WORTH, Texas -- FFP Operating Partners LP plant to sell 114 of its 170 convenience stores and fuel supply agreements through an auction managed by Matrix Capital Markets Group Inc.
The auction is being held following a sale motion filed by FFP in its Chapter 11 case in the U. S. Bankruptcy Court for the Northern District of Texas. Both the sale procedures and the actual sale of the stores through the auction are subject to the approval of the court. The stores are being sold free and clear of liens, claims and encumbrances.
Cedric Fortemps, vice president of Matrix Capital Markets Group, told Convenience Store News Online the company expects a “mix of buyers from large, national c-store chains to regional chains to individual entrepreneurs.”
“Our hope is to maximize the proceeds to unsecured and secured creditors from the sale of the stores, whether that results from one buyer or many buyers,” Fortemps said.
Of the total block of stores being auctioned, 87 are in Texas, seven in Tennessee, five in Louisiana, five in Missouri, four in Mississippi, three in Kentucky and one store each in New Mexico, Oklahoma and Arkansas. Six of the locations are owned in fee and 95 are leased. FFP is only selling its fuel supply agreement at 13 stores.
All of the stores sell a traditional assortment of c-store merchandise and motor fuels. Forty-eight FFP stores offer CITGO branded motor fuels and 52 offer unbranded fuels. At the remaining stores, six offer Diamond Shamrock, three offer Texaco, three sell Conoco and one store offers Fina.
According to the procedures, which are subject to approval by the court, bids can be submitted on individual stores, predetermined groups of stores and for all of the stores. FFP will also consider pre-emptive and stalking-horse bids. All bids must be submitted on or before 5:00 pm EDT on Nov. 15, 2005, or such other deadline approved by the court. Bidders submitting qualified bids, as defined in the sale procedures motion, will be invited to attend the auction on Nov. 30.
In 2004, FFP’s stores sold more than 50 million gallons of motor fuels and averaged approximately $600,000 in merchandise sales.