FFP Operating Partners settles for $265,532

by Paul Schreiber

SBJ Reporter

pschreiber@sbj.net

State officials have reached a $265,532 settlement with FFP Operating Partners LP, a company licensed by the Missouri Division of Finance to sell money orders.

The Division of Finance made a claim against FFP's bonding company, Developers Surety, after it failed to comply with Missouri's money order laws, Finance Commissioner D. Eric McClure said in an Aug. 11 Department of Economic Development announcement.

FFP Operating Partners sold Financial Express money orders at gas stations and convenience stores it owned, including Kwik Pantry, Nu-Way, Economy Drive-In, Taylor Food Mart, Drivers, Quick Pantry, Kwick Stop, Fina Mart and Total Food Mart. FFP Operating Partners operates about 280 convenience stores, gas stations and truck stops primarily in Texas, but also in nine other Southern, Central and Southwestern states.

FFP Operating Partners' Forth Worth, Texas-based parent company, FFP Marketing Co., operates six subsidiaries: Direct Fuel LP, FFP Operating Partners LP, FFP Financial Services LP, FFP Money Order Co. Inc., Practical Tank Management Inc. and FFP Transportation LLC, said Keith Thornburg, chief counsel for the Division of Finance.

FFP Operating Partners became insolvent in October 2003, he added, and has filed for Ch. 11 bankruptcy protection. The troubled convenience store chain has closed more than 100 stores since 2002.

"The company was very cooperative with this," Thornburg said.

Missouri's settlement has been deposited in the state's unclaimed property fund.

"I am proud of the effort by my staff to obtain this settlement for the benefit of Missouri consumers," McClure said in the DED news release. "The Missouri Attorney General's Office and the Missouri State Treasurer have provided seamless coordination to facilitate the settlement. I am pleased that FFP and its bonding company cooperated fully to resolve this matter."

FFP Operating Partners has continued to pay or refund outstanding money orders and will pay on them through October, the DED release said. At that time, the state will begin refunding the unpaid money orders FFP Operating Partners sold in Missouri.