ALCO Stores

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ALCO Stores, Inc.
Type Discount store
Traded as NASDAQALCS
Industry Retail
Founded 1901
Headquarters Coppell, Texas
Products Clothing, footwear, bedding, furniture, jewelry, beauty products, electronics, market, housewares
Website http://www.ALCOstores.com/

ALCO Stores, Inc. (formerly Duckwall-ALCO Stores) is a retail chain operating 217 stores in 23 states, primarily in the United States Midwest. The company was founded in 1901 in Kansas by Alva Lease Duckwall. [1] It has its headquarters in Coppell, Texas.

History[edit]

An ALCO store that was closed April 29, 2013 in Vermilion, Ohio.
Duckwall's variety store photographed in Brush, Colorado, in 1991.

In its early years the company operated five and dime (or "variety") stores called Duckwall's. In 1968 it began to move into the discount retail business and opened stores that were bigger than their five and dime counterparts called ALCO. ALCO stores (somewhat smaller than a non-supercenter Walmart) provide the full selection of merchandise offered by the company, while the Duckwall stores provide a limited selection.

In 1985, after three acquisitions, the company went through a management-led leveraged buy-out. The company had 127 ALCO stores, and 33 Duckwalls in 14 states at that time.[2]

In May 1989, Duckwall-ALCO filed Chapter 11 bankruptcy, emerging in 1991 after securing financing from GE Capital, its primary creditor.[3] At least 52 stores were closed during this period. After 1989 they switched to their current business strategy of targeting communities where no direct retail competitor existed (such as Walmart, Target or Kmart). The strategy proved to be successful for Duckwall-ALCO and as of June 2008 there were 205 ALCO stores and 59 Duckwall stores.

The company previously experimented with a combination discount and food store called C.O.L.A. (Cost of Living Adjusters) in Mineral Wells, Texas, which was discontinued.[3] The company also began a supercenter concept, ALCO Market Place, by providing limited perishable goods. (There is only one store that is a ALCO Market Place in the United States) These stores are considerably smaller than Walmart's or Target's supercenter stores.

The company's 352,000-square-foot (32,700 m2) distribution center is located in Abilene, Kansas.

Duckwall-ALCO stores announced on November 29, 2010 that it will close all 44 of its Duckwall stores, thus ending the Duckwall name. The store in Hettinger, North Dakota would be reopened as an ALCO while the remaining 43 stores would permanently close.

In the Fall of 2011, Duckwall-ALCO stores opened its first store in Dallas-Fort Worth area of Texas in Grand Prairie, Texas but plans to close its Grand Prairie, Texas store in May of 2014.

On April 10, 2013, ALCO Stores, Inc. announced that the Company will move its corporate headquarters from Abilene, Kansas, to Coppell, Texas, a suburb of Dallas.

On July 25, 2013 Argonne Capital Group, LLC entered into a definitive agreement to acquire ALCO Stores, Inc. for $14 per share, which while representing a 60% plus premium to its prior share price,[4] was nearly 50% lower than the book value of the company. Despite the recommendations of ALCO's Board to approve this transaction, on October 30, 2013 the majority of the company's shareholders voted to reject Argonne's offer, [5] an event which happens rarely with shareholders.

On March 6, 2014 Milwaukee Private Wealth Management, Inc. recommended the nomination of five Director candidates to the company's Board to replace the existing members at the upcoming June 2014 Annual Meeting. The candidates nominated are William J. Florent, Stanley B. Latacha, William L. Lechtner, Robert J. Sarlls and Mark R. Schultz. [6]

On April 3, 2014 a group led by Milwaukee Private Wealth Management, Inc. joined Concerned ALCO Shareholders in creating one unified slate of Director candidates to present to ALCO shareholders at the 2014 Annual Meeting of Shareholders. The candidates nominated are Stanley B. Latacha, Dilip Singh, John M. Climaco, David W. Pointer, and Robert J. Sarlls. [7]

Acquisitions[edit]

Duckwall-ALCO has grown through various acquisitions over the years.

External links[edit]

References[edit]

  1. ^ "Home." Duckwall-ALCO. Retrieved on December 8, 2011.
  2. ^ a b c d e http://www.fundinguniverse.com/company-histories/DuckwallALCO-Stores-Inc-Company-History.html
  3. ^ a b ALCO gets reprieve; financing is extended - Duckwall-Alco Stores Inc | Discount Store News | Find Articles at BNET.com
  4. ^ ALCO Stores, Inc. Enters Into Definitive Agreement to Be Acquired by Argonne Capital Group Global News Wire, July 25, 2013. Accessed March 7, 2014 http://globenewswire.com/news-release/2013/07/25/562392/10041824/en/ALCO-Stores-Inc-Enters-Into-Definitive-Agreement-to-Be-Acquired-by-Argonne-Capital-Group.html
  5. ^ Alco Stores Shareholders Reject Argonne Deal Wall Street Journal, October 30, 2013 Accessed March 6, 2014 http://online.wsj.com/article/BT-CO-20131030-719004.html
  6. ^ Milwaukee Private Wealth Management Nominates a Slate of Highly Qualified Candidates for Election at ALCO Stores' 2014 Annual Meeting of Shareholders PR Newswire March 6, 2014 http://www.prnewswire.com/news-releases/milwaukee-private-wealth-management-nominates-a-slate-of-highly-qualified-candidates-for-election-at-alco-stores-2014-annual-meeting-of-shareholders-248881701.html
  7. ^ Concerned ALCO Stockholders Joins with Milwaukee Private Wealth Management, Inc. to Solicit Proxies for a Combined Slate of Highly Qualified Director Candidates at ALCO Stores’ Annual Meeting PR Newswire April 3, 2014 http://finance.yahoo.com/news/concerned-alco-stockholders-joins-milwaukee-145800072.html
  8. ^ Duckwall-ALCO inks deal to acquire 14 locations. (Duckwall-ALCO Stores Inc.) | Daily News Record | Find Articles at BNET.com