Banruptcy buyout makes Cody's No. 2 in market

With the purchase, which closed in bankruptcy court Dec. 28, Cody’s surpassed fellow Springfield-based chain Rapid Roberts’ 23 area stores. Cody’s portfolio now comprises 25 stores, second to West Des Moines, Iowa-based Kum & Go’s 33 stores in southwest Missouri.

Cody’s, which was founded five years ago with a single store in Rogersville, has grown through acquisitions and new construction.

Express Lane parent company Waddill’s Markets Inc. filed for Chapter 11 bankruptcy protection in July, according to U.S. Bankruptcy Court filings.

Filings also show that Cody’s acquired the six stores for $1 million.

Cody’s actually began operating the stores in late September under a temporary agreement, according to Curtis Jared, executive vice president for Jared Enterprises, parent company of Cody’s.

“It was basically our money being put in there with our risk,” Jared said. “We weren’t paying anything to the owners. We were just keeping them operational.”

The six stores are located at 2744 E. Chestnut Expressway, 3506 N. Glenstone Ave., 3450 W. Division St., 1821 W. Grand St., 6935 W. Highway 60 in Republic and 414 N. Public Ave. in Clever.

Waddill’s Markets’ majority owner, David Deck, declined to comment. Deck’s attorney, Raymond Plaster of Moon, Plaster & Sweere LLP, said his client was in the process of paying creditors.

Waddill’s Markets’ liquidation plan filed Dec. 21 reports net assets of $162,749 and remaining debt of $888,839 to unsecured creditors. About $516,000 has been paid to secured creditors, said Plaster, who added that claims from creditors are in flux and that it appears creditors won’t be paid in full.

The liquidation plan states: “Debtor experienced greater competition, its profit margins were tighter, and its credit card fees had increased. In addition, there were demographic changes in debtor’s market and some of its stores had outlived their useful life and needed to be re-imaged at a time debtor did not have the cash flow to re-image.”

Waddill’s Markets also sold an Express Lane store at 1211 E. Grand St. to Nick Adams, who formerly served as minority owner and president of Waddill’s Markets. Calls to Adams weren’t returned by press time.

Jared said signage at the Express Lane stores would switch over by the end of January, and some light renovations, such as painting, would soon follow.

“They all have good potential,” Jared said. “One of the reasons we acquired them is because we feel that we can improve on the business significantly.”

Rapid Roberts owner Rob Wilson said the growth of Cody’s hasn’t directly impacted his stores, but he acknowledged that it has had a market impact.

“Any time somebody comes in, they have an opportunity to take some of your business,” Wilson said. “Whether it’s Kum & Go or Cody’s or an independent that comes in, it’s always something you’ve got to be aware of and grow your business accordingly.”

Cody’s plans for 2008 include a store under construction at 2149 S. Campbell Ave. and the chain’s first truck stop under construction at 3445 E. Kearney St. Both locations are slated to open in March. The 10,000-square-foot truck stop will feature showers, a 40-seat truckers’ lounge, small arcade and a separate fueling area for the semi-trucks.

Jared acknowledged that more acquisitions could be on the horizon, but he declined to comment on rumors that Cody’s would buy Snak-Atak stores from Carthage-based Grace Energy Corp.[[In-content Ad]]