Circle K plans to cut its size by more than 40%

Nation's Restaurant News, Dec 16, 1991

PHOENIX -- Circle K, the nation's second-largest convenience-store chain, plans to close or divest 1,556 of its 3,700 domestic units during the next 18 months.

Outlets that survive the purge will be outfitted with a new foodservice-equipment package as part of a total overhaul, according to company officials. They have earmarked $300 million for the capital improvements.

After the cutbacks Circle K would compete within 36 markets spread across 18 states. It currently has units in 55 markets and 32 states.

The steps are part of new proposal to pull the franchisor out of bankruptcy. The plan has already been submitted to creditors and will soon be presented to the U.S. court that has overseen Circle K since it filed for Chapter 11 protection in May 1990.

At a news conference Circle K executives explained that the chain had too few customers to support the number of stores in operation.