EG Group exit from Davenport, IA
Posted: September 16th, 2023, 11:46 pm
So in Davenport, IA Kroger had a collection of old run down 70s 7-11 units running as Kwik Shops. Never knew Kroger had these locations but assume they had them a while. Probably 20 locations.
It seems EG Group did not want these locations and found a buyer for the locations a few months ago. The buyer is called Brew Oil. Brew Oil took and put Sinclair branding on the fuel. New canopies, signs, pumps all properly stickered, a complete and thorough fuel rebranding. The stores got fully remerchandised and already had pretty modern interiors left over from Kroger but no signs on the stores.
While driving around I noticed these stations had no gas and looked closed / abandoned. But one I saw a person so I went in. Inside was a partially empty store and signs stating all items 30% off store closing. Went to a couple more locations I thought were closed and they were also open and also having this sale but at 50% off. Some stores were fully stocked and others were sort of empty. Some had full coolers with all Coke, Pepsi etc available while others that stuff had been cleared.
Asked employees what happened and got a few different explanations but from what I could gather it appears the landlord does not approve of these stations having this Brew Oil as a tenant and basically told Brew Oil to buy the real estate on the sites or get out.
So I have to wonder how this went down. My guess is EG first sold the real estate and then decided to sell the stations. Perhaps this sort of maneuver is how EG makes money. It is really a shame Kroger sold the c store division.
Now I assume when the leases transferred from EG to Brew that the landlord had to approve that. I cannot imagine a business purchase being funded without that being approved.
It will be interesting to see what happens in the future involving these sites. These are pretty poor sites, old, small. One was a nice new Kroger build store but that one was also in a lousy neighborhood.
Then over in IL not too far away, EG still has some random Minit Mart units. They've stripped out all of the Cumberland Farms branding on the coffee, no longer do iced coffee, and use non Cumberland Farms cups for most of the coffee. Also no signs about the 1.29 price point but they are offering that price. Very weird operation. The employees there were polo shirts that say EG America.
It seems EG Group did not want these locations and found a buyer for the locations a few months ago. The buyer is called Brew Oil. Brew Oil took and put Sinclair branding on the fuel. New canopies, signs, pumps all properly stickered, a complete and thorough fuel rebranding. The stores got fully remerchandised and already had pretty modern interiors left over from Kroger but no signs on the stores.
While driving around I noticed these stations had no gas and looked closed / abandoned. But one I saw a person so I went in. Inside was a partially empty store and signs stating all items 30% off store closing. Went to a couple more locations I thought were closed and they were also open and also having this sale but at 50% off. Some stores were fully stocked and others were sort of empty. Some had full coolers with all Coke, Pepsi etc available while others that stuff had been cleared.
Asked employees what happened and got a few different explanations but from what I could gather it appears the landlord does not approve of these stations having this Brew Oil as a tenant and basically told Brew Oil to buy the real estate on the sites or get out.
So I have to wonder how this went down. My guess is EG first sold the real estate and then decided to sell the stations. Perhaps this sort of maneuver is how EG makes money. It is really a shame Kroger sold the c store division.
Now I assume when the leases transferred from EG to Brew that the landlord had to approve that. I cannot imagine a business purchase being funded without that being approved.
It will be interesting to see what happens in the future involving these sites. These are pretty poor sites, old, small. One was a nice new Kroger build store but that one was also in a lousy neighborhood.
Then over in IL not too far away, EG still has some random Minit Mart units. They've stripped out all of the Cumberland Farms branding on the coffee, no longer do iced coffee, and use non Cumberland Farms cups for most of the coffee. Also no signs about the 1.29 price point but they are offering that price. Very weird operation. The employees there were polo shirts that say EG America.