Lykins Enterprises Inc., based in Maysville, Ky., and three of its related companies filed voluntary petitions to reorganize under Chapter 11 of the U.S. Bankruptcy code on Jan. 29, 2010, according to David Lykins, CEO and founder of the business, The Ledger Independent reported.
Lykins Enterprises sells fuel on a wholesale basis to customers in Kentucky, Ohio and Indiana, and owns 15 gas stations in Kentucky.
“Even though Lykins Enterprises has been a successful company for 32 years, it faced near-term liquidity pressure from an unprecedented combination of factors: the precipitous drop in the price of oil in the last quarter of 2008, which caused the company to lose over a million dollars in less than a month and the unrelenting attack by…big box retailers using gasoline as a loss leader,” Lykins told The Ledger Independent in a statement. “The company had no other choice but to file Chapter 11, which will allow us to stabilize our financial base. The good news is we have valuable assets and we are optimistic we will be able to meet our obligations going forward.”
He added, “we plan on revising our cash management system, tighten up our receivables and emerge from Chapter 11 as soon as possible. Customers should see no difference in our day-to-day operations. This was a very hard decision for us to make but we believe it to be in the best interest of our company and our employees as well as our community.”
Lykins Enterprises has partnered with Kroger to offer discounts on fuel sales, which went into effect earlier this week. Kroger Plus cardholders can fuel up at the Shell Gas Station across from the Market Square Shopping Center on Kentucky 9 and receive as much as a 10 cent discount on each gallon of gas. Lykins noted that his store on the AA Highway is the first gas station in Kentucky to participate in the pilot program with Kroger.
Lykins also corrected previous news reports about the company’s assets, stating that the company has assets in excess of $20 million and has debt of $16 million.