Kum & Go LLC, of West Des Moines, Iowa, has retained The Energy Exchange of Chicago to coordinate a sealed bid auction for 21 Kum & Go locations that don’t align with the company’s future plans, the company said.
The sealed bid auction will include 12 locations in Iowa, three in South Dakota, two in North Dakota and one each in Missouri, Montana, Nebraska and Wyoming.
The company began divesting itself of smaller locations and stores outside of its core markets last August, primarily an effort to increase the number of larger Kum & Go stores. The company 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 these 21 stores is paralleled by an anticipated record number of new store builds for Kum & Go. In 2008, Kum & Go has already opened seven new locations in Oklahoma, South Dakota, Colorado and Nebraska and plans to build 27 more in 12 states before the end of the year.
The stores being auctioned “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,” said Mark Raccuia, executive vice president of The Energy Exchange,
Kum & Go has more than 430 convenience stores in 12 states