Small Town Retailer Set to ClosePosted: Updated:
A Texas-based retailer with stores in a dozen small Indiana communities is closing. ALCO Stores Inc. is involved in Chapter 11 bankruptcy proceedings and plans to shut down its nearly 200 U.S. locations early next month. The Indiana locations listed on the ALCO website are:
Originally Distributed October 13, 2014
COPPELL, Tex. - ALCO Stores, Inc. (ALCS)(“ALCO” or the “Company”) today announced that the Company and its subsidiary, ALCO Holdings, Limited Liability Company, filed on October 1
2, 2014 (the “Petition Date”) voluntary petitions for relief (the “Chapter 11 Petitions”) in the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division (the “Bankruptcy Court”) seeking relief under the provisions of Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”).
The Debtors expect to continue to operate their businesses as "debtors-in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code during the pendency of the cases under Chapter 11 of the Bankruptcy Code (the “Chapter 11 cases”).
On the Petition Date, the Company entered into a Debtor-in-Possession Credit Agreement (the “DIP Credit Agreement”), by and among ALCO Stores, Inc., as Lead Borrower, the persons named in Schedule 1.01 and Schedule 1.02 thereto, Wells Fargo Bank, National Association, as Administrative Agent and Collateral Agent (in such capacity, the “Agent”), Swing Line Lender, Term Loan Agent, Sole Lead Arranger and Sole Bookrunner for the lender parties thereto, and the lenders party thereto (the “Lenders”) , pursuant to which the Agent and the Lenders agreed to provide (a) a senior secured revolving credit facility in an aggregate principal amount not to exceed $110,000,000 and (b) a senior secured term loan in the original principal amount of $12,675,000, in order to, among other things, repay certain pre-petition obligations, fund the Debtors’ chapter 11 cases, and provide working capital for the Debtors during the pendency of the Chapter 11 cases.
In connection with the Chapter 11 Petitions, the Company filed a motion seeking the Bankruptcy Court's approval of the DIP Credit Agreement.
ABOUT ALCO STORES
Founded in 1901, ALCO is a broad-line retailer, primarily serving small underserved communities across 23 states, which specializes in providing a superior selection of essential products for everyday life in small-townAmerica.
The Company has 198 ALCO stores that offer both name brand and private label products of exceptional quality at reasonable prices. ALCO is proud to have continually provided friendly, personal service to its customers for the past 113 years.
ALCO has its corporate headquarters in suburban Dallas, Texas, and its distribution center in Abilene, Kansas. To learn more about the Company visit www.ALCOstores.com.
Source: ALCO Stores Inc.