A proposed $21 million transaction to expand the SQRL chain of fuel stations provides a glimpse inside its operations. That offer to buy a string of convenience stores in southwest Arkansas owned by Blackmon Oil Co. in Glenwood coincided with longtime CEO David Blackmon looking to retire.
“They came to us with a crazy high offer, but it’s a number you don’t say no to,” said Ethan Blackmon, who succeeded his father as CEO last year. “The big pitch to us was they were going to be the Chick-fil-A of convenience stores. We owned 11 stores that were under contract from fall of 2022 until spring of 2023.”
Ethan Blackmon and his brother, Elliot, were to stay aboard and the Blackmon Oil staff was to be retained under the proposal that eventually fell apart. The more the Blackmons learned about SQRL during the six-month option period, the more they grew concerned about its viability.
“They presented as a real estate company that didn’t care about the fuel business,” he said. “Their model is to buy, flip and lease back.
“But it’s not sustainable unless they keep buying and selling property. They can’t support the lease payments. It’s my opinion their model is not sustainable.”
As shown in the sidebar below, SQRL has a track record of buying real estate and quickly reselling it at significantly higher prices. SQRL CEO Joseph Blake Smith couldn’t be reached for comment.
Concerned about what the future might hold under SQRL ownership, the Blackmons offered to sell the properties for $30 million during the option period with no strings in terms of continued employment and staff retention.
“If they paid, we were going to share the extra money with our employees in case they ended up losing their jobs when everything fell apart,” he said.
The 11 Blackmon Oil convenience stores that SQRL hoped to buy are listed among 21 properties associated with a creditor lawsuit filed in Pulaski County Circuit Court on Dec. 7.
Alliance Technical Group LLC of Decatur, Alabama, filed a $36,527 claim against SQRL Holdings LLC and its Standard Development Co. affiliate for unpaid site assessment work on the properties.
The work is tied to invoices from January, February, March, May and June 2023.
The ATG lawsuit joins three earlier creditor suits filed in Pulaski County Circuit Court against SQRL, several affiliates or its CEO, Joseph Blake Smith of Little Rock, or its president, Adam Lusthaus of Boca Raton, Florida.
On Oct. 19, Texas businessman Sohail Karani filed a $60,745 claim for unpaid assets and bills associated with the sale of two C-stores.
On Oct. 24, Southern States Realty Group LLC of Groveland, Florida, filed a claim of more than $2.9 million for unpaid real estate commissions for helping SQRL sell convenience stores in several states.
On Nov. 3, Coulson Oil Co. of North Little Rock filed a $518,819 claim for unpaid fuel delivered to 14 SQRL outlets.
A Sampling of SQRL Fuel Stations
SQRL lists nine convenience stores in Pulaski County among 125 locations on its website. Three operate under the SQRL banner, two are being redeveloped into SQRL stores, and three are closed or undeveloped. One convenience store operates as a Valero. All of the properties were purchased through a SQRL affiliate, Standard Development Co.
Former Hess Food Mart
13325 E. First St., Alexander
Bought for $500,000 in April 2023.
Sold in April 2023 for $2,083,395 to CRH II LLC of Charlotte, North Carolina.
The dormant property is in the very early stages of conversion to a SQRL store.
Valero
1424 N. Locust St., North Little Rock
Bought for $2.1 million in March 2023.
Sold for $2,259,273 in March 2023 to CRH II.
The convenience store is closed.
Former Citgo
120 Marshall Road, Jacksonville
Bought for $950,000 in March 2023.
Sold for $2,303,766 in March 2023 to CRH II.
The property is operating as a Valero.
Former TJ Mart
13622 Sardis Road near Shannon Hills
Bought for $450,000 in September 2022.
Sold for $1,336,937 in September 2022 to EK ARWI Gas LLC of Miami, Florida.
The dormant property is partially redeveloped as a SQRL store.
Former Col. Glenn Grocery
17500 Col. Glenn Road
in west Pulaski County
Bought for $696,800 in August 2022.
Sold for $1,328,752 in August 2022 to LR Gas 2022 LLC, led by Irene Lambris of Henderson, Nevada.
The project recently opened as a SQRL store.
Former Sunny Superstop
6828 Col. Glenn Road, Little Rock
Bought for $850,000 in June 2022.
Sold for $1,828,571 in June 2022 to Arkagas LLC, an affiliate of Gorgon Capital Management in Miami.
The VP Racing Fuels project was sold for $2,085,000 in July 2023 to the Filmore Evan Smith Living Trust of Miami Beach, Florida.
The convenience store is closed.
Former Citgo
8623 Warden Road, Sherwood
Bought for $675,000 in September 2022.
Sold for $1,555,555 in September 2022 to RCP Sherwood LLC, an affiliate of Rhino Capital Partners of Rye, New York.
The project was redeveloped into a Phillips 66 SQRL store.
Former Citgo
8900 Stagecoach Road, Little Rock
Bought for $1.5 million in January 2023.
Sold for $1,950,000 in January 2023 to RCP 8900 Stagecoach LLC, an affiliate of Rhino Capital Partners of Rye, New York.
The project was reflagged as a Phillips 66 SQRL store.
Former Hardee’s restaurant
1815 N. First St., Jacksonville
Bought for $1.2 million in April 2022.
Sold for $2,266,667 to We’ll Call It 85 LLC, an affiliate of Gorgon Capital Management in Miami.
The property remains undeveloped.
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