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Friday, July 29, 2011

RPM Puts 16 Stores on Block

Source: CSP Daily News
Debtor in possession selling locations in Alabama, Florida, Georgia

CHICAGO -- As the result of a Chapter 11 bankruptcy filing, RPM Financial LLC--the debtor in possession--is selling a group of 16 operating and recently closed convenience stores with gasoline. The properties, located in Alabama, Florida and Georgia, are owned and operated by RPM and affiliated company USA Travel.

As reported in a Morgan Keegan/CSP Daily News Flash yesterday, all but three of the stores are in Alabama. Five of the operating stores are in the Montgomery, Ala., market, with eight closed stores there and in smaller towns around the state. There are also two closed stores in resort markets in Gulf Breeze and Pensacola, Fla., and one operating store in Cuthbert, Ga.

Most of these properties have c-stores, while a few are kiosk-type store, and some sites are on large lots. "The operating sites have good sales volumes, and a number of the facilities are less than 10 years old," said Evan Gladstone, executive managing director of NRC Realty & Capital Advisors LLC.

NRC said that it has been retained by the U.S. Bankruptcy Court for the Middle District of Alabama (Case No. 11-30545) to sell off the properties in a sealed-bid auction. The stores are being sold in a 363 bankruptcy process free and clear of all liens. All are fee properties and are being sold without supply or branding agreements.

RPM manager K. Raymond McCullough filed for Chapter 11 bankruptcy protection on March 2, 2011, citing up to $50,000 in financial assets and between $100,001 and $500,000 in liabilities.

At the same time, McCullough filed for Chapter 11 bankruptcy protect for his Diamond Quality Stores LLC business, citing less than $50,000 in assets and $1 million to $10 million in liabilities. And on March 31, McCullough's USA Travel Centers Inc. filed for bankruptcy protection, citing up $500,000 in assets and up to $50 million in liabilities. All three businesses operated out of the same address in Highland Home, Ala., according to bankruptcy court documents accessed by CSP Daily News.

The creditors owed the largest amounts of money for all three bankruptcies at the time of the filings, according to court documents, included $15.1 million owned to Colonial Pacific Leasing Corp., Omaha, Neb.; $46,469 to Coca-Cola, Atlanta; and $42,264 to Petrey Wholesale, Luverne, Ala. The documents also note that USA Travel Centers owned $359,000 to Diamond Quality Stores for inventory.

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