Tags: bankruptcy | Alco | store | retail

Texas Discount Chain Alco Stores Files for Bankruptcy

Monday, 13 Oct 2014 10:24 AM

Texas-based discounter Alco Stores Inc. filed for bankruptcy, joining the list of smaller U.S. retailers seeking protection from creditors.

The 113-year company, blaming a "lingering economic slowdown" for its predicament, said it hoped to sell better-performing stores while liquidating the rest.

Alco, based in Coppell, Texas, caters mostly to fixed and low-income customers in rural areas in 23 states.

The company has 198 stores and 3,000 employees.

In a bankruptcy filing on Sunday, the company said it was facing increased competition from specialty retailers, dollar stores and Internet-based businesses.

Alco said it had an initial, or "stalking horse," bid from a joint venture including Tiger Capital Group LLC, SB Capital Group LLC and Great American Group WF LLC.

As of July, the company listed assets of $221.8 million and liabilities of $161.6 million, most of which was owed to Wells Fargo and CIT Bank.

Wells Fargo has agreed to provide debtor-in-possession financing to enable the company to run its stores during its bankruptcy process, Alco said.

Alco's shares were down 67 percent at 54 cents in early trading on the Nasdaq. Up to Friday's close, the stock had fallen about 83 percent since the start of the year.

In October 2013, the stock was trading around $14.

Other retail bankruptcies this year include clothing chains Love Culture Inc and Coldwater Creek and discount retailer Dots LLC.

© 2017 Thomson/Reuters. All rights reserved.

 
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Texas-based discounter Alco Stores Inc.filed for bankruptcy, joining the list of smaller U.S. retailers seeking protection from creditors. The 113-year company blamed a "lingering economic slowdown" for its predicament
bankruptcy, Alco, store, retail
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2014-24-13
Monday, 13 Oct 2014 10:24 AM
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