Editor’s Note: On Feb. 6, after Arkansas Business went to press, Joseph Blake Smith asked that his Chapter 13 bankruptcy be dismissed. On Monday, U.S. Bankruptcy Judge Bianca Rucker granted his request and dismissed Smith’s case without prejudice, meaning the bankruptcy could be refiled later.
Joseph Blake Smith, the former owner of SQRL, filed for Chapter 13 bankruptcy reorganization last month.
In the Jan. 28 initial filing, Smith listed his estimated liabilities at between $50,000 and $100,000. He used the same range for his estimated assets.
The filing also said that the debts are primarily consumer debts. Smith estimated he has between one and 49 creditors. A more detailed bankruptcy filing is due by Tuesday.
Smith and SQRL made a big splash several years ago, saying SQRL was “revolutionizing the convenience store industry.” The company said it held more than 350 stores across 14 states, but many of the stores in Arkansas never opened.
Smith and the company have faced several lawsuits, including a $7.2 million judgment for fraud and breach of fiduciary duty dating back to 2019.
Smith is represented in the bankruptcy case filed last month by attorney Vanessa Cash Adams of Little Rock. She didn’t return messages from Whispers.
Smith’s financial problems were also highlighted in his 2024 divorce case.
Smith was required in November 2024 to pay Amanda Smith, who filed for divorce, $23,000 a month. But those payments didn’t last long, according to a June filing by her attorney.
That filing said that Blake Smith paid her only $5,000 in February 2025 and didn’t pay anything in March, April or May.
Blake Smith, through his attorney, said in his response filed July 1 that he “has experienced a drastic loss of income.”
Their divorce case in Pulaski County Circuit Court remains open.
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