When Maverik’s acquisition of Des Moines-based Kum & Go was finalized two years ago, the Utah company’s then-CEO wanted Iowans to know two things: That the Kum & Go name would continue to be used in at least Iowa and Maverik would have a corporate presence in Iowa’s capital city.

Chuck Maggelet, Maverik’s CEO at the time of the Kum & Go purchase, retired nine months after the deal was finalized. His pledges left with him.

In July, Maverik began putting its name on the Kum & Go stores in Iowa. This week, the company made public plans to significantly reduce its corporate operations in Des Moines.

“As part of our ongoing efforts to improve efficiency and better serve our growing customer base, Maverik has made the difficult decision to consolidate its Base Camp headquarters in Salt Lake City,” Michelle Monson, a company spokesperson, wrote in an email. “A limited presence will remain in Des Moines to support geographically-based business needs.”

Monson did not respond to questions about why the move was being made or how many people would remain in Des Moines.

“We’re disappointed in the move and in [Maverik’s] decision,” said Matt Anderson, Des Moines’ deputy city manager. But, he added, “It’s not really surprising.”

When the acquisition of Kum & Go was announced in August 2023 “we were happily surprised that they made a 10-year commitment to Des Moines,” Anderson said. “What we had originally expected is coming two years later.”

Kum & Go’s roots in Iowa were deep. The convenience store chain was co-founded by William A. Krause and his father-in-law, Tony Gentle, in 1959 in Hampton, Iowa. The two men operated a full-service gasoline station that sold fuel as well as automotive products. In 1963, the station began selling milk and bread and other food staples. The company became known as Kum & Go in 1965.

At the time of the sale, Kum & Go had nearly 400 stores in 13 mostly Midwestern states. Maverik also had nearly 400 stores in 12 mostly western states.  

A couple weeks after the sale was finalized, the Des Moines City Council approved an agreement with FJ Management Inc., Maverik’s parent company, to provide the company a $250,000 economic development grant to be paid in $25,000 installments over 10 years. In return, the company agreed to establish a regional headquarters in 40,000-square-feet of space at 1100 Locust St. and hire or retain 250 jobs with pay at or above an average salary of $98,000.

In 2024, Maverik received an incentive payment of $19,875 from the city, according to officials. The agreed-upon $25,000 payment was reduced by 20.5% because Maverik only had 209 full-time workers at its regional corporate office.

The city “will not be providing any additional incentive payments based on the recent layoffs and relocation information,” Carrie Kruse, Des Moines’ economic development coordinator, wrote in an email.

According to Iowa’s Worker Adjustment and Retraining Notification, or WARN, website, 100 Maverik employees will be laid off, effective Oct. 6.

“We are currently working closely with impacted Team Members to develop individual plans, including relocation opportunities, and are committed to supporting them with transparency and care throughout this transition,” Maverik’s Monson wrote in an email.

Anderson said, “Those are high-paying jobs; they were good jobs. Clearly, it’s a loss.”

The loss of the Maverik jobs highlights the importance of continuing to diversify downtown Des Moines’ economy “so that it’s more resilient and less office,” he said. “We need to continue adding more housing, more hospitality and entertainment, food and beverages options.”

The office space Maverik is leasing is part of an office building owned by Nationwide, based in Columbus, Ohio. Nationwide has reduced its workforce in recent years. The reductions have meant the insurance and financial services company needs less office space. It sold one of its downtown buildings to the city of Des Moines; it is leasing a large portion of another building to American Equity Investment Life Insurance Co. and smaller spaces to other companies, including Maverik.

In the second quarter, the office vacancy rate in Des Moines’ Central Business District was 26.9%, according to CBRE’s market report.

It’s not yet known whether Maverik will sublease its office space or buy out its contract with Nationwide. The space is in a good location and has parking available, Anderson said.

“Nationwide has had good success in marketing their space,” Anderson said. “We see tenants moving in and out of the market. [Maverik] is one we thought we had for 10 years. Unfortunately, we don’t.

“Our downtown will go on and our economic development will go on.”