Some 17 sites are up for sale following Red Eagle’s chapter 11 bankruptcy filing last fall.
Red Eagle Oil Inc. is selling its 17 gas stations and convenience stores, following its Chapter 11 bankruptcy filing in August, according to the Wyoming Business Report.
The sale is being conducted under Chapter 11 laws through the U.S. Bankruptcy Court for the District of Wyoming.
The Cody, Wyo.-based family-run business is owned by President Dale Hinze and Vice President Bryan Hinze, and stores are located in Cody, Buffalo, Casper, Guernsey, Lovell, Ralston, Riverton and Sheridan, along with one in Hardin, Mont. The average store measures more than 3,200 square feet, and the average property size is approximately 1.8 acres. All of the stores are located along major highways and roads.
The real estate is being offered as part of the sale for all stores; 14 of which are company operated, and two of which are currently operating as unattended fueling sites. One store is closed. The two unattended sites have convenience store buildings on the properties that are currently closed, but can be reopened by the buyer, according to the Wyoming Business Report.
Bids are being accepted for individual stores, multiple stores or all. The stores are being sold free and clear of all liens, claims and encumbrances. Bids are due April 4 and can be made to Vance Saunders or Cedric Fortemps, (804) 591-2039, or [email protected] or [email protected].
Before filing for bankruptcy, court documents show Red Eagle failed to pay its bills since April 2011. The company’s problems began in 2009 due to the recession. The owners tried to negotiate “reasonable payment plans” with vendors and creditors, and sold some of the company’s property.
Following the initial hearing in August, Federal Bankruptcy Judge Peter McNiff ruled that Red Eagle could continue operations as usual at that time. Pending lawsuits estimated Red Eagle faces a debt of at least $6 million in payments, while the bankruptcy petition noted Red Eagle owed as much as $10 million.