Applegreen terminates $750M journey plaza deal in Massachusetts

Dive Brief:

• Applegreen has terminated its cope with the Massachusetts Department of Transportation to redevelop and function 18 freeway service plazas within the state, an organization spokesperson mentioned in an announcement to C-Store Dive.
• Applegreen mentioned that “commercial realities” in addition to the specter of litigation from competing bidder Global Partners “have jeopardized the project’s timeline and financing.” Dublin-based Applegreen was initially granted rights to the journey plazas in a deal that may see the retailer spend $750 million over the subsequent 35 years.
• This marks a stunning conclusion to the continuing battle between Applegreen and Global Partners, through which the Massachusetts firm has repeatedly accused the Irish retailer and MassDOT of performing in unhealthy religion. Applegreen has denied any wrongdoing.

Dive Insight:

Almost instantly after Applegreen and MassDOT introduced their deal in June, Global Partners expressed public frustration on the resolution, calling its personal pitch less expensive and logical since Global Partners is a neighborhood entity. In late July, Global Partners known as for an investigation into Scott Bosworth, the state official who helped oversee Applegreen’s proposal to MassDOT, citing concern over Bosworth’s previous involvement with Applegreen and whether or not his skilled relationships could have impacted MassDOT’s resolution.

That frustration escalated in July when Global Partners filed an ethics grievance and requested an investigation into MassDOT’s course of. A month after that, Global Partners sued MassDOT for failing to offer documentation from its settlement with Applegreen. The rift reached a climax final week when Global Partners requested a courtroom order to dam the deal from finalizing.

With this announcement, the 18 journey plazas in Massachusetts look like up for grabs as soon as once more.

In an announcement to C-Store Dive, Applegreen’s spokesperson mentioned the retailer and MassDOT have formally terminated their ongoing lease discussions amid the difficulties they’ve confronted throughout this course of.

“As the largest and most-respected motorway service operator in the United States, Applegreen regrets that it was not able to bring its world-class operating expertise to the Commonwealth,” Applegreen’s spokesperson mentioned. 

A spokesperson from Global Partners didn’t reply by press time when requested to remark.