SEVERAL gas stations have abruptly closed after its parent company filed for Chapter 11 bankruptcy.
Customers rushed to five gas stations selling fuel for $2.49, but the stores have now all abruptly shut down.
Mountain Express Oil filed for Chapter 11 bankruptcy in March, according to C-Store Dive.
The bankruptcy transitioned to Chapter 7, making the company liquidate all of its assets.
The proceedings shut down five Sinclair-branded Iowa gas stations in four cities - Cedar Rapids, Hiawatha, Eldridge, and Davenport.
All five stores had just rebranded from Kwik Shop locations.
Read More on Bankruptcy
Drivers sped to the locations recently, as they marked down gas to $2.49, according to Corridor Business Journal (CBJ).
The statewide average for gas was $3.29 on October 16, according to AAA.
The flee to grab cheap gas ended abruptly after a Texas-based judge ordered the company to cease gas station operations.
Customers ran into makeshift store closed signs on the front door of the five sites in September.
Most read in Money
CLOSE FLOWS
The abrupt closure of the five gas stations surprised the station's manager, Brew Oil, according to CBJ.
Another company took over the five locations and asked the manager to vacate the premises.
"This unexpected development had significant repercussions for Brew’s lease agreements and rents," Brew Oil said in a statement.
"Despite Brew’s earnest efforts to negotiate a new long-term lease with the owners of these properties, negotiations ultimately failed."
The management company decided to donate all of its leftover products to local foodbanks - the products were worth an estimated $170,000.
"The Davenport Community School Food Pantry is overjoyed by the generous donation from Brew that has been given to our guests at the JB Young Opportunity Center over the last month," the pantry's director, Ralph Kelly, said to CBJ.
"We had lines of people who were very appreciative."
Brew Oil operates 28 other gas stations in Iowa and plans to expand.
SLAM ON THE GAS
Gas prices have been particularly volatile throughout the US this year following dozens of negative shocks to the production market.
The ongoing war between Russia and Ukraine, drops in fuel production out of Saudi Arabia, and steady increases in consumer need drove up the cost of fuel.
A rise in gas prices lead to momentary increases in food costs for two months this year following months of decreasing economic pressure at the grocery store.
Read More on The US Sun
The U.S. Sun reports on other bankruptcies - these three major EV brands all headed to Chapter 11.
Also, a food producer had to declare bankruptcy to clear debts.
ncG1vNJzZmivp6x7tbTEZqqupl6YvK57zKilnrFfboB1fpZyamifkah6tMDAraCopl2YubC%2FxJ1koqenlnq0tc2co5qhomKvorrKq6yprJOufA%3D%3D