Circle K Agrees to Purchase Offer
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PHOENIX — Circle K Corp., a convenience store chain that is in bankruptcy, announced Wednesday that it has agreed to be purchased for $375 million by an investor group that includes the owner of Saks Fifth Avenue.
The sale price is $50 million less than the $425 million CK Acquisitions tentatively agreed to pay in March.
The reduced sale price reflects plans by CK Acquisitions to spend more than Circle K had planned on upgrading gasoline facilities and replacing underground storage tanks, Circle K Chairman Bart A. Brown Jr. said.
The company, which lost $1 billion over the past two years, filed for Chapter 11 protection from its creditors in May, 1990.
The agreement is subject to approval by Circle K’s creditors and a bankruptcy court judge. The creditor groups have until July 27 to solicit competing bids to present to the court, which will decide which bid to accept.
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