ALCO Stores Files for Bankruptcy as Small-Town Sales Slow
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ALCO Stores Inc., the 113-year-old small-town retailer, sought bankruptcy protection with a plan to liquidate assets at store-closing sales, blaming a drop in consumer spending on a lingering economic slowdown. The shares fell 71 percent today in New York trading.
ALCO, which also cited increased competition for the bankruptcy filing, listed assets of $221.7 million and debt of $161.6 million as of July in Chapter 11 documents filed yesterday in U.S. Bankruptcy Court in Dallas. The company said it owes about $104.2 million under a credit agreement with Wells Fargo Bank NA.