Court decision expected soon on ALCO bankruptcy
by Pinedale Online!
November 18, 2014
News is expected soon from the court on how discount retailer ALCO Stores Inc will be allowed to proceed with their financial reorganization after filing for bankruptcy protection from creditors on October 12th. The company has a chain of 198 stores and about 3,000 employees across the country which serves mostly small rural towns in 23 states, including one near Pinedale, Wyoming.
The financial package restructuring involves a loan that would allow the company to pay pre-bankruptcy debt. The 113-year-old small-town retailer hopes the court will approve a plan to liquidate assets at store-closing sales. They are blaming their situation on a drop in consumer spending on a lingering economic slowdown. The case is ALCO Stores Inc., 14-bk-34941, U.S. Bankruptcy Court, Northern District of Texas (Dallas).
The company is based in Coppell, Texas. It was founded in 1901 as a single variety store that focuses on smaller communities with limited access to other regional or national retail chains.. It offers items including furniture, household goods, food items, clothing, electronics and more.
The company has approached potential buyers to purchase the chain and keep some, or all, stores operating, ALCO plans to borrow as much as $122.7 million from a group of lenders arranged by Wells Fargo, consisting of a $110 million revolving credit facility and a $12.7 million term loan, to help fund operations while in bankruptcy.