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 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.
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.
