Gas Station and Convenience Store Chain
Company:Gas Station and Convenience Store Chain
This Florida gas station/convenience store had a number of deferred maintenance issues and continually had negative monthly cash flow. Management had no inventory or cash controls in place. The Company’s liquor license was in the process of being revoked, as it had not paid state sales tax for some time.
Focus was engaged by the lender to restructure the operations, intervene in the pending loss of liquor license, make necessary repairs and bring the company back to profitability.
- Repaired, rather than replaced, the majority of the broken pumps, which saved money and drove inside store sales.
- All card readers were broken, forcing customers to pay for gas inside the store, these were also repaired or replaced.
- Repairs were made to the roof and the HVAC systems.
- Coolers that were not functioning were repaired.
- The store was re-stocked, management was replaced and inventory and cash control systems were put in place.
- Most importantly, FMG worked with the Florida ATF division to stop the liquor license from being voided and mitigated the sales tax liability.
- Vendor relationships that had been strained due to non-payment were also restored.
- These changes resulted in the gas stations to begin operating efficiently and Focus monitored operations on a weekly basis, preserving the asset for its stakeholders. Focus marketed the property for sale and received three offers, one of which was accepted by the lender.