Dive Brief:
- The owner of about 30 SQRL-branded convenience stores across the South has been granted authority to evict Gas Hub LLC, the investment firm that acquired SQRL’s assets earlier this year, from over half of its locations, according to a Sept. 20 motion filed with the U.S. Bankruptcy Court for the Northern District of Texas, Dallas division.
- Cameron Property Co. LLC has been authorized to “immediately pursue and exercise any and all contractual and legal rights and remedies” for 18 of its c-stores across Texas, Florida, Arkansas and Oklahoma, the court ruled. Cameron has been fighting in court for this outcome ever since it terminated the stores’ leases in April, yet Gas Hub continued operating them.
- Cameron’s victory in court may preview similar outcomes for other SQRL landlords — including Blue Owl Capital — as the tumultuous legal battle over the rights to the once-promising convenience store chain’s locations continues.
Dive Insight:
Cameron’s relationship with SQRL dates back to early 2023 when the real estate company acquired 30 convenience stores via multiple sale-leaseback transactions. Cameron acquired the majority of those properties that December, according to a September 2024 motion.
Upon acquiring the leases to SQRL’s c-stores this past April, Gas Hub stopped paying Cameron rent, according to the motion. After serving a notice of default and still not receiving rent, on April 16, Cameron terminated the leases for all 30 properties.
However, over the next several months, Gas Hub “failed and refused to relinquish possession of the Properties, choosing instead to remain in place rent-free,” according to the motion. Additionally, Cameron claims that Gas Hub “wrongfully accessed all monies generated from the operation of the Properties” during this period.
After months of disputes, the bankruptcy court officially ruled in favor of Cameron on Sept. 20, with the order “immediately enforceable upon its entry,” according to the motion. Cameron is now permitted to repossess 18 of its stores, which includes evicting Gas Hub and changing the locks and other security devices if it wishes to do so.
And more locations might be on the way, as Cameron waits for approval to repossess three more SQRL properties in Florida and one in Texas, according to the motion.
Cameron’s case is one of the few victories that SQRL landlords have seen in recent months as many try to repossess their convenience stores. The most significant case is that of Blue Owl, which is fighting in court to repossess the 223 c-stores it leased to SQRL Holdings and then Gas Hub.
Counsel representing Gas Hub did not respond by press time to comment.
