By the early 2000s, Kiel Bros. was swimming in debt as industry consolidation and low gas prices stretched profit margins to the brink. The business racked up environmental fines and closed stores. In June 2004, Greg Pence resigned as the company filed for bankruptcy.
2004… low gas prices…
I got my license in 1989. I don’t remember the gas prices in the run-up and opening stages of the Iraq War being “low”. I remember them being damned fucking high. In fact, in 2004, they were 50 cents/gallon higher than they’d been in 1990. And they were trending UPWARD. That’s when Greg Pence declared bankruptcy: when his product was in the middle of an already multi-year price climb! If you look at them in adjusted pricing, the only time they’d been higher than during Greg Pence’s tenure was the early years of the Reagan administration, when the Soviets were in Afghanistan and the Iran-Iraq war was going on (and that in the wake of OPEC intentionally jacking the prices)!
‘Gosh, we’re making more money per gallon every day, but we’re going broke.’ That’s what Pence and Kiel want you to believe they were looking at. How many well-run companies say that?
Soooo… No. No, do not believe the bullshit companies like Kiel want to tell you about ‘low gas prices’ being a problem. Their problem was mismanagement, and it was, and is, incredibly common in the petroleum sector where companies know that even now, they’ve got a sizable captive audience.