Kum and Go arrives; most stay, some go

Company closes four Springfield stores

by Paul Schreiber

SBJ Reporter

pschreiber@sbj.net

Git-n-Go stores, an ubiquitous presence in Springfield's convenience store scene for more than 25 years, has a new owner and a new name Kum & Go.

Des Moines, Iowa-based Kum & Go LC acquired Git-n-Go Inc.'s 76-store fleet comprising 36 stores in Missouri and 40 in Oklahoma for $9 million June 15 in U.S. Bankruptcy Court. The highest concentrations of stores are in Springfield, with 24 stores, and Tulsa, Okla.

Lauding Springfield and Tulsa as "two great markets," Kyle Krause, president of Kum & Go, said the company grew about 20 percent with this buy. Both markets are among the best in which the company operates, he said, citing business expansion, rising census numbers, a strong college base and a solid "sports and culture community."

Tulsa-based Git-n-Go Inc. filed Chapter 11 bankruptcy in January.

Privately held Kum & Go employs about 3,500 in more than 420 stores in 13 states, said Maureen Roushar, public relations spokesperson. Store sign changes should be complete by the first week of September, she added.

Store closings

Of the 114 stores Git-n-Go operated originally, the company's restructuring officer closed 38 before Kum & Go picked them up, Krause said. Of the remaining 76, eight stores were closed.

Four stores each in Missouri and Oklahoma were shut down, Roushar said. Three didn't have gas services, one had an environmental issue, and four others had leasing arrangements or a landlord issue that couldn't be resolved, she said.

Kum & Go has sought to retain as many former Git-n-Go employees as possible, Roushar said. Following human resource interviews with Git-n-Go's store management and operations staff, about 600 existing employees have stayed on since the buyout.

While stressing that customer service is Kum & Go's fundamental offering, changes in product line or services appear to be minimal, according to Roushar. She said there will be some additional credit card services, as well as the introduction of Hiland products from the company's private-label line of food and drink products.

Vendors

Many local suppliers offering soft drinks, beer and some snack foods have been retained, said Jeremy Woods, manager at Kum & Go's 1306 W. Sunshine store. Additional items like candy bars, certain brands of chips, sandwiches and drinks are delivered via Farner-Bocken Co., a convenience store wholesale distributor with headquarters in Carroll, Iowa.

Farner-Bocken Co. fulfills the role that Hale-Halsell Co., Git-n-Go's parent firm, used to provide prior to bankruptcy, Krause said. Farner-Bocken also supplies Kum & Go stores operating in Oklahoma and Arkansas.

Arnco Transport, Git-n-Go's previous supplier, delivers fuel locally, Woods said.

Delivery of gas products will change, Krause said, adding that his own company, Solar Transport, will take on that role. "I think it's something we'll probably transition to in the next few months," he said.

One local vendor that didn't stay on board was Daylight Donuts. Dwight Martin, owner, had been a Git-n-Go vendor for about five months before its demise. He said Kum & Go "never really approached us" about staying on.

On July 12, Krispy Kreme Doughnuts began a delivery agreement to 29 Kum & Go stores in Missouri, said Mike Parker, Krispy Kreme's divisional market manager. It's not a contractual obligation, he said, but added that "Kum & Go has made their commitment to us pretty evident by putting a full sign at their stores.

"The roll-out to Kum & Go has nearly doubled our off-premise sales in the Springfield market," Parker said, but he declined to disclose the figure.

Store acquisitions

The Git-n-Go cluster is one of a number of convenience store acquisitions Krause had added to the Kum & Go portfolio. In 1996, 99 stores owned by Omaha, Neb.-based Contemporary Industries, a 7-11 franchisee, went bankrupt and were bought by Kum & Go. That buy grew the company from 150 to 250 stores, he said.

In 1999, 43 stores were bought from the Hy-Vee grocery store chain located in West Des Moines, Iowa, Krause said. Prior to Git-n-Go's purchase, Kum & Go finalized a 34-store deal with Cenex Corp. a Minneapolis-St. Paul-based firm.

Krause Gentle Corp. was formed in 1959 by Kyle Krause's father, Bill Krause, and Tony Gentle in Hampton, Iowa. The company is run by CEO Bill Krause and President Kyle Krause.

Adding new Kum & Go stores in Springfield is likely, Kyle Krause said, although a specific growth plan has not been established yet. He would not disclose revenue figures for the company.