My car mostly runs on electricity and has a tiny two-gallon gas backup. On long trips, I stop at gas stations more often than I did with a traditional car, but the tank fills quickly and I rarely go inside the store.
Drivers of electric vehicles are visiting convenience stores less often, contributing to declining in-store sales for gas retailers.
I’m not alone. Many EV owners are spending less time, and money, inside gas station stores. These shifts in consumer behavior are among the factors behind the recent Chapter 11 bankruptcy filing of LKM Convenience, which operates gas stations and convenience stores under the Brothers Food Mart and Magnolia Express brands.
LKM files for Chapter 11 bankruptcy
“LKM Convenience LLC, a Metairie, LA-based operator and sublessor of convenience stores and gas stations, filed for chapter 11 protection on January 14, 2026, in the Eastern District of Louisiana. The company sought relief under Subchapter V of the bankruptcy code, which provides a streamlined reorganization process for small business debtors,” according to a post on X, the former Twitter, by RK Consultants.
The company is an operator of convenience stores and gas stations, not the owner of the brands.
“Managed by Lenny Motwani, the company operates under the Brothers Food Mart and Magnolia Express brands. The business maintains a network of retail fuel locations and convenience stores throughout Jefferson Parish, with key real estate assets situated in Bridge City and Westwego. LKM Convenience has historically functioned as both a direct operator and a master lessor for third-party petroleum retailers,” according to RK Consultants.
The filing was confirmed by Bankruptcy Observer.
“The bankruptcy petition for LKM CONVENIENCE LLC showed assets in the range of $0-$100,000 with liabilities in the range of $1 million to $10 million. LKM CONVENIENCE LLC reports that the number of creditors is in the range of 1-49,” according to Bankruptcy Observer.
Gas stations and convenience stores have struggled
Convenience stores that sell gas have been suffering from two things: lower gas prices and flat gas sales
Chris Rapanick spoke on the issue at 2025’s NACS State of the Industry Summit.
In “Industry Data You Can Use to Power Your Business,” Rapanick, who has been managing the NACS State of the Industry Enterprise for over 10 years, talked about key trends, challenges, and opportunities within the c-store industry, Convenience.org reported.
Falling gas prices, he noted, hurt operators who get paid a percentage of sales.
“Fuel price was down over 10% in 2023 and over 6% in 2024. Industry fuel sales were down $101 billion over the last two years. This has led to changes in the c-store sales mix, particularly among sites that do not have a robust in-store offer,” he shared.
Store sales have not made up that difference.
“For inside sales, there’s still the impact of inflation. And every time we think it’s going to go down, it spikes back up. For the past few years, we’ve adjusted our inside sales numbers for inflation and there’s no growth—less than flat for merchandise in terms of actual dollar sales—and every [in-store] category in convenience is down in units.”
Falling gas prices have hurt many gas stations.
Shutterstock
Electric vehicle charging has not helped
As the driver of an electric vehicle, it’s hard to not notice that gas stations with EV charging are not common. That’s something industry insiders explained.
“The business case isn’t there quite honestly,” said Joe Hamza, chief operating officer for Nouria, during a Convenience Leaders Vision Group roundtable in August, CStore Dive reported.
Nouria offers EV chargers at about a quarter of its locations.
“Joe Sheetz, executive vice chairman of Sheetz, agreed that ‘the momentum has slowed’ with EV charging. The Pennsylvania-based retailer has EV chargers at roughly 20% of its stores,” Sheetz said.
In 2025 convenience stores saw on average fewer than 130 charging sessions per site per month, according to a report from the Transportation Energy Institute’s Charging Analytics Program.
Related: 41-year-old trucking company giant files Chapter 11 bankruptcy
LKM Convenience Chapter 11 bankruptcy details
Case & Filing Details
- Debtor: LKM Convenience LLC, a convenience store operator associated with Brothers Food Mart and Magnolia Express brands.
- Filed: Voluntary Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Eastern District of Louisiana on January 14, 2026.
- Case No: 26‑10083.
- Filing Type: Reorganization under Chapter 11 (small business designation).
Source: Bankruptcy Observer
“The restructuring follows significant operational strain caused by Hurricane Ida in 2021, which resulted in the total destruction of the company’s 1020 Bridge City Drive facility. This loss led to a cascade of legal disputes with sublessees and master landlords over rent liabilities,” RK Consultants reported.
Key LKM Chapter 11 deadlines
- Small Business Plan due: July 13, 2026.
- Last Day to file Small Business Plan (if extended): November 10, 2026.
- Disclosure statement & schedules due: January 28, 2026.
- Required Filings (by Jan 28, 2026)
Schedules A/B through J‑2 (assets/liabilities, contracts, income/expenses).Statement of Financial Affairs.
Balance Sheet & Cash Flow Statement.
Source: Bankruptcy Observer
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