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Gas City Auctions Off Stations for $135 Million to Pay Back Debts

The Frankfort-based company sells its 50 stations to 14 buyers as part of Chapter 11 filing. Its future as a business is uncertain.

Gas City's 50 service stations and truck stops were auctioned off for $135 million Monday as part of the company's bankruptcy protection filing, leaving the future of the Frankfort-based business uncertain.

14 different buyers purchased the stations, and multiple bids were placed on most of the properties, said Daniel Zazove, the Chicago attorney representing Gas City. In the Chicago area, the stations include locations in Frankfort, Mokena, New Lenox, Shorewood, Oswego, Darien and Joliet. Stations elsewhere in the state, as well as in Indiana, Arizona and Florida, also were auctioned off.

in U.S. Bankruptcy Court in Chicago on Oct. 26. Court documents list company assets of between $50 and $100 million and debts of $100 to $500 million.

The sale of these stations will go toward paying the money Gas City owes, Zazove said, but it isn't enough to cover the entire debt. 

What this sale means for Gas City as a company is undetermined.

"Well, when the sale closes they won’t have anymore gas stations," Zazove said. "We’ll have to decide what we do when we conclude the sales. ... It will be a while before the future of Gas City is decided."

A Gas City spokeswoman who refused to give her name would not comment on the auction or what the effect the sale would have on the company. 

The auction will be finalized in U.S. Bankruptcy Court in Chicago on April 13. Zazove said it could take 45 days or more to close the individual sales of the properties.

"Most of the people there seemed very pleased with the results of the auction," he said.

rita stoll June 21, 2011 at 04:14 PM
Don't worry about what your neighbor has as much as think about how and what is the best way to provide for yourself and for your family? When change occurs, how will you roll through the change? I am saddened with the closing of G.C. I lost a client. You and many that you know lost a job. It is not easy to find jobs, but it is possible. Finally, I have done and will continue to do, from when I first heard about the struggles that G.C. was enduring...pray. Prayer is a blanket of comfort. At first my prayers were for me. Now they are for all of you. I do not apologize for my belief in prayer nor do I apologize for my faith in Christ, as a Christian, this is the best advice for all of you. Through this, you find within yourself comfort and a lesser "desire" to add fire to an already burning fire. My five years or so with G.C. was pleasant. I enjoyed this client. I will miss this client. My concern is with YOU. Mock me, bash me, laugh at me? I hope not. I also do not apologize for errors...typo & such. When you write from the heart the message is what is in question. ~ Rita Lenzi-Stoll ~
Nobody June 22, 2011 at 02:04 PM
Who cares about Gas City. Who used to sell cheap gas early years and now one of the most expensive gas stations...
s June 20, 2012 at 12:54 PM
I also worked for Gas city, it was an ok place to work. Except for one thing the DM'S , they liked to take the Managers Bonuses.. I also was the only Manager in my District to work 3 shifts in a row on 9-11, did I get anything extra ? NOOOOO..
s June 20, 2012 at 01:02 PM
you are wrong!! every gas station, if it's shell, BP speedway, gas city gets there gas from the same place.. it's only the additives that make it different.. like in Diesel gas they put color into it so they know where it goes...
s June 20, 2012 at 01:40 PM
I use to be the manager there during 9-11, and yes it was the only gas station around.

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