The gas station and convenience store industry faced significant challenges throughout 2024, with several major players experiencing financial difficulties leading to bankruptcies and operational changes. The trend began in March when Shell plc announced its intention to sell approximately 500 company-owned retail locations annually during 2024 and 2025. This strategic move was part of Shell’s broader initiative to modernize its retail network by expanding electric vehicle charging capabilities and enhancing convenience offerings to better serve evolving customer needs.
Later in the year, The Store, a chain of convenience stores and gas stations under Team Schierl Cos., ceased operations at all 25 of its locations across Michigan and Wisconsin. This closure, which occurred on July 31, 2024, was precipitated by the Chapter 7 bankruptcy filing of its landlord, Mountain Express Oil Co., in August 2023. Mountain Express, established in 2000 and based in Alpharetta, Georgia, had previously managed a network of 828 fueling centers and 27 travel centers across 27 states before its bankruptcy. The Store had sold its real estate assets to Mountain Express in 2022 while maintaining operational control of the businesses.
In a more recent development, SQRL Service Stations of Florida received court approval on November 15 to convert its Chapter 11 bankruptcy case to Chapter 7 liquidation. This decision came after a bankruptcy trustee determined the company had no viable path to reorganization or successful sale of its business operations. The company’s financial situation was dire, with no active bank accounts or income streams, and its primary assets consisted of approximately 406 gas station leases throughout the United States, whose value was deemed questionable.
SQRL’s troubles began shortly after Gas Hub Investments acquired the chain for $17 million in April 2024. The company’s financial difficulties became apparent when it immediately began defaulting on lease payments for April 2024 and subsequent months. The situation deteriorated further when a court granted one landlord permission to evict Gas Hub from 18 SQRL convenience store locations across multiple states, including Arkansas, Florida, Oklahoma, and Texas.
The complexity of SQRL’s bankruptcy case increased when Gas Hub filed an involuntary Chapter 7 liquidation petition against SQRL Holdings and its founder Blake Smith in May 2024, citing millions in unpaid rent. This legal action was eventually resolved when attorneys from both sides filed a joint motion to dismiss the involuntary Chapter 7 case, leading to SQRL Service Stations’ Chapter 11 filing in August.
The bankruptcy proceeded to its current state with SQRL carrying over $1.2 billion in unsecured debt, ultimately resulting in the conversion to Chapter 7 liquidation. This sequence of events highlights the broader challenges facing the gas station and convenience store sector, as operators navigate changing consumer preferences, operational costs, and market conditions. The industry’s
transformation is particularly evident in Shell’s strategic shift toward electric vehicle infrastructure, with the company already operating approximately 139,000 electric charge points globally, including more than 28,000 at Shell forecourts and various other locations such as supermarkets and mobility hubs.