SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
for the period ended 15 November, 2007
BP p.l.c.
(Translation of registrant's name into English)
1 ST JAMES'S SQUARE, LONDON, SW1Y 4PD, ENGLAND
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F |X| Form 40-F
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes No |X|
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The following was issued by BP America Inc in the USA at 19.30 UK time
NOVEMBER 15, 2007
BP TO SELL MOST COMPANY-OWNED, COMPANY-OPERATED
U.S. CONVENIENCE STORES TO FRANCHISEES
Long-term franchise agreements will preserve
high-value fuels distribution system
NAPERVILLE, IL - BP's U.S. Convenience Retail unit announced today that it will
sell all of its company-owned and company-operated convenience stores. The
majority of sites will be sold to franchisees and some will also be sold to
dealers and large distributors (jobbers). The sale of the convenience stores
will be completed over the next two years. The sites will continue to market BP
fuels in the eastern U.S. and ARCO fuels in the western U.S. The franchise
agreement is 20 years and requires sites to be supplied with BP or ARCO branded
fuels for the term of the 20-year contract.
"By tapping into the entrepreneurial experience and knowledge of local station
owners, we will build a strong franchise network that will help us grow our
business," said Fiona MacLeod, president of BP U.S. Convenience Retail.
Currently in the U.S., about 95 percent of BP's retail sites are operated by
independent businesspeople.
BP will support franchisees with a strong field-based staff and a small head
office located in La Palma, California. The U.S. Convenience Retail office in
Naperville, Illinois will close. As announced last month, BP will move to a
single franchised convenience store brand-ampm-in the U.S.
"The ampm brand has a 30-year track record in the western U.S. and has seen very
positive results east of the Rockies based on the value that franchisees bring
to the business. The brand has a 94 percent brand awareness rating west of the
Rockies, and a strong international presence in Japan, Brazil, and Mexico. We
are excited about growing the brand in the eastern U.S.," said MacLeod.
The business change is in line with BP's October reorganization announcement
aimed at simplifying the company and improving performance. Of BP's 13,000 U.S.
retail sites, this sale of more than 700 company-owned and -operated convenience
stores will eliminate 9,500 BP convenience store positions and 350 business
support staff. About 100 employees from BP's Pipelines and Logistics Unit will
also be affected.
"We know that these changes will be very difficult for our employees, and we are
putting measures in place to assist affected business support staff, including
job placement assistance," said MacLeod. "It's been our experience that the
majority of convenience store employees are retained by the new owners."
MacLeod emphasized that convenience retail is a key BP business that positively
represents the BP brand, has a strong franchise base and a legacy of operational
excellence. "This business and the people in it have created a culture of
excellence that will be the backbone of our organization going forward."
Diversity and inclusion continues to be an important part of BP's franchising
efforts. In 2006, BP began an initiative to recruit minority franchisees, and
that work will continue. "We are not leaving these communities," said MacLeod,
"As much as possible, we want ampm stores to be owned and operated by people who
live in the communities we serve."
Franchising opportunities in individual marketing areas will be announced
separately. For more information on BP franchising, please visit
www.bpampmfranchising.com.
Notes to Editors:
- The ampm brand was founded in 1978 in Southern California by ARCO. The
brand became part of BP when BP acquired ARCO in 2000.
- ampm convenience stores have been recognized in the Franchise Times "Top
200" and Entrepreneur's "Franchise 500."
- ampm stores are currently found in California, Nevada, Oregon,
Washington and Arizona. BP is franchising stores in Chicago, Indianapolis,
Pittsburgh and Atlanta; BP Connect stores in these markets will be converted
to ampm. Remaining company-owned and -operated sites in these markets, as
well as Columbus, Cleveland, Cincinnati and Orlando, will be converted to
ampm convenience stores and franchised. There are more than 2,000 ampm
stores in Brazil, Japan and Mexico.
- A jobber is a company that purchases large quantities of fuel from a
refiner (such as BP) for distribution to gas stations.
- BP markets more than 15 billion gallons of gasoline every year to U.S.
consumers through 13,000 retail outlets. BP is the single, global brand
formed by the combination of the former British Petroleum, Amoco
Corporation, Atlantic Richfield (ARCO) and Burmah Castrol.
Media contacts:
Valerie Corr, +1 (630) 821-3206
Scott Dean, +1 (630) 821-3212
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BP p.l.c.
(Registrant)
Dated: 15 November, 2007 /s/ D. J. PEARL
..............................
D. J. PEARL
Deputy Company Secretary