Once-thriving convenience store chain shuts doors for good after bankruptcy

A once-popular Midwestern convenience store chain has finally gone out of business after filing for bankruptcy. 

Mega Co-op, a chain of gas station and convenience stores that thrived before the pandemic, filed for Chapter 11 bankruptcy in September 2023. 

The company initially closed 13 of its 31 locations and restructured, emerging from bankruptcy in June 2024. 

Despite cost-cutting efforts — including ending its franchise agreement with Holiday Stationstores — Mega Co-op failed to return to profitability. 

On March 14, the company shut down its remaining stores for good.

CEO Mike Buck said the company had to admit defeat after failing to turn a profit over the last year. 

Buck also blamed lower fuel margins and persistent cashflow problems.

Mega Co-op’s website has gone dark, and its locations are now listed as permanently closed. 

Years of soaring inflation and stretched consumers have created a tough environment for convenience stores. 

7-Eleven recently revealed it would close 444 locations in North America due to inflation and a decrease in cigarette demand.

This shift saw a 26 percent decrease in total packs sold, from 10,300 million in 2019 to 7,600 million in 2024.

This decline was not saved by shoppers opting for different options, with only an 18 percent shift to other nicotine products, and more buyers switching to cheaper products.

‘Pullback in consumer spending has persisted beyond prior expectations,’ the chain said at the time. 

With more than 13,000 stores across the US, Canada and Mexico, the closures make up only 3 percent of the company’s portfolio and they have since announced further store openings. 

Closures are also hitting discount stores as lower-income consumers hardest hit by inflation pull back their spending. 

Dollar General is set to close almost 100 stores in coming weeks, as well as 45 locations under its pOpshelf brand. 

CEO Mike Buck said the company had to admit defeat after failing to turn a profit 

All 31 of Mega Co-op’s locations are now closed 

The discount retailer, which operates more than 20,000 stores nationwide, said the closures come after a review of its store portfolio — with the shops all not making enough money. 

‘Many of our customers report they only have enough money for basic essentials, with some noting that they have had to sacrifice even on the necessities,’ CEO Todd Vasos said of the closures.

Experts warning that up to 15,000 physical storefronts could shut down nationwide by the end of the year —double the 7,000 that closed in 2024. 

Dozens of giant chains — including Macy’s, Party City, and Big Lots — launched a massive slate of store closures in the past 12 months amid changing customer trends.