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04/27/2009
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Staff File Photo by David Leamingfrom the Kennebec Journal
BUDGET CUTS ORDERED
Many happy returns in Richmond
Tax woes land on Whitefield
Rapist denied new trial
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COLLEGE HOCKEY: Maine rallies but falls short against Boston College
COLLEGE ROUNDUP: Colby women win season opener at home tournament
All of today's:
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from the Kennebec Journal
from the Morning Sentinel
WEDDING BURGLAR JAILED
Youths talk Turkey Day
Plenty of free Thanksgiving meals available
Turkey prices make for happier holiday
Kennebec County Superior Court
POLICE
COLLEGE HOCKEY: Maine rallies but falls short against Boston College
COLLEGE ROUNDUP: Colby women win season opener at home tournament
All of today's:
News | Sports
from the Morning Sentinel
ALBION -- The recession is making a mess of the convenience-store industry in Maine.
Count Albion Variety among the more than 50 such stores statewide that have closed in the past year.
Jeff Leonard, a spokesman for the National Association of Convenience Stores, said Wednesday that Maine lost 56 convenience stores last year, from 1,146 to 1,090. The first half of the year was particularly rough on the industry because higher gas prices result in a lower store markup -- in this case, 2 cents a gallon, Leonard said.
While the Albion landmark sits closed, its owner is looking for work.
Jim Provost, 51, said Tuesday that he was forced to close Albion Variety in early April because he was not able to successfully restructure his loan with an area bank or establish a loan with two other banks. Provost owned the store at the China Road, Winslow Road and Benton Road intersection for 19 years.
He started seeing decreased revenue in January 2008, he recalled. By September, Provost said, he began falling behind on his payments.
Provost declined to name the bank that has taken over ownership of his property, on advice of his lawyer.
Albion Variety is among the dozen or more area convenience stores that have closed in the past year in Burnham, South China, Hartland, Chesterville, North Anson, Starks, Phillips, Bingham, Norridgewock, Pittsfield and Kingfield.
Bruce Harrington, a commercial lender for Merrill Bank in Waterville, said cash flow at some convenience stores is "dismal." Merrill Bank is not the company that owns Albion Variety.
"We have denied some convenience stores loans recently because the financial strength is not there," Harrington said. "If we had one in our portfolio, we would work with them, but we're less likely to take one on."
Harrington said tiny fuel profits are a big problem for convenience-store owners.
"They're making little or nothing, especially paying credit-card fees," he said. "People pay at the pumps, so they don't go in and buy those extra items. They don't buy the coffee, chips and things and that's where they make their money. I hate to see them having the troubles they are having."
Albion town historian Phil Dow said Llewellyn Libby unknowingly built the store on a cemetery, in 1883.
"When they dug the cellar for an addition, stones surfaced and bodies probably were moved," Dow said. "An 1856 Kennebec County map shows it was a graveyard."
The building has operated continuously as a store, Dow said.
Provost said he has looked for loans at banks and credit unions.
"One stated that convenience stores were a diseased business and they didn't want them in their portfolio," he said.
Albion Variety began losing a lot of money in February 2008, he said.
"In the whole convenience-store business, there's a huge problem right now," he said. "I'm out of it and I won't get back into it."
Larry Grard -- 861-9239
lgrard@centralmaine.com
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