ALCO Stores
| File:ALCO-logo.png | |
| Company type | Public |
|---|---|
| Nasdaq: ALCS | |
| Industry | Retail |
| Founded | 1901 |
| Defunct | March 23, 2015 |
| Fate | Bankruptcy and liquidation |
| Headquarters | Coppell, Texas |
| Products | Clothing, footwear, bedding, furniture, jewelry, beauty products, electronics, market, housewares |
ALCO Stores, Inc.—previously known as Duckwall-ALCO Stores—was a retail chain that operated 198 outlets throughout 23 states, predominantly in the Midwest region. Established in 1901 by entrepreneur Alva Lease Duckwall in Kansas, the company’s headquarters were located in Coppell, Texas, with its distribution center based in Abilene, Kansas, the site of its former main office.
In October 2014, ALCO filed for Chapter 11 bankruptcy protection; subsequently, the entire chain was acquired by a liquidation company and ceased operations by March 2015.
History
The company initially ran five-and-dime stores under the Duckwall's brand before venturing into discount retailing with the launch of the first ALCO store on August 15, 1966, in Clovis, New Mexico. Compared to Duckwall’s variety stores, ALCO locations provided a wider assortment of merchandise.
By 1985, following three acquisitions and a management-led leveraged buyout, the enterprise managed 127 ALCO stores alongside 33 Duckwall outlets across 14 states.
First bankruptcy and subsequent developments
In May 1989, Duckwall-ALCO entered Chapter 11 bankruptcy but emerged from reorganization in 1991 after obtaining financing from its principal creditor, GE Capital. The restructuring process involved closing at least 52 stores. After reorganization, the company adopted a new strategy focusing on underserved markets lacking competition from large retailers such as Walmart, Target, or Kmart. This approach facilitated expansion to 205 ALCO locations and 59 Duckwall stores by June 2008.
The firm tested a discount-food hybrid concept named C.O.L.A. (Cost of Living Adjusters) in Mineral Wells, Texas, which was eventually discontinued. Additionally, it introduced smaller supercenter formats under the ALCO Market Place banner that featured limited fresh goods but were more compact than Walmart or Target supercenters.
On November 29, 2010, ALCO announced it would close all 44 Duckwall stores to simplify operations; one location was converted into an ALCO store while the remainder were permanently shuttered. Following this change, the company rebranded itself as ALCO Stores, Inc.
In the fall of 2011, ALCO expanded into the Dallas-Fort Worth Metroplex by opening a store in Grand Prairie; however, due to poor sales performance, this store closed by May 2014.
On April 10, 2013, corporate headquarters moved from Abilene to Coppell, Texas.
Second bankruptcy and closure
On October 12, 2014, ALCO Stores Inc. filed for Chapter 11 bankruptcy protection citing heightened competition and declining consumer and business confidence that led to reduced shopper traffic and diminished discretionary spending. On November 17, a joint venture specializing in liquidation submitted the sole bid during bankruptcy court proceedings and was approved as the new owner.
Liquidation sales commenced on November 21, 2014; all remaining stores had closed by March 2015. Shopko acquired twenty former ALCO locations and converted them into Shopko Hometown stores; these sites closed permanently following Shopko's bankruptcy in 2019. Bomgaars took over twelve other former ALCO properties while Orscheln Farm & Home purchased ALCO’s distribution center in Abilene, Kansas. Various other sites were acquired by different companies including Brookshire Brothers in Pilot Point, Texas.
Acquisitions
- 1983 - Purchased Sterling Stores Co. Inc, headquartered in Little Rock, Arkansas, operating 48 locations under the Sterling and Magic Mart brands across Mississippi and Arkansas. The majority of these outlets were rebranded as ALCO or Duckwall stores; however, the Sterling name persisted until the final store shut down in 2005.
- 1984 - Acquired David's, a retail chain based in Wichita, Kansas.
- 1985 - Took over Hornsby, a small chain of nine stores located in Morris, Illinois.
- 1996 - Added Val, consisting of 14 stores situated in Indiana and Ohio, with its headquarters in New Castle, Indiana.
- 1997 - Obtained 18 locations from Perry Brothers operating in Texas and New Mexico, which were subsequently transformed into Duckwall stores.
External links
- Archived website of ALCO stores (prior to bankruptcy, 2013)
- Archived website of ALCO stores (following bankruptcy, 2015)
- [Corporate history of Duckwall-ALCO Stores Inc.]
- [Image depicting a Duckwall store in Concordia, Kansas]
References
- Pages with broken file links
- Companies based in Texas
- Companies that have filed for Chapter 11 bankruptcy
- Companies that filed for Chapter 11 bankruptcy in 1989
- Companies that filed for Chapter 11 bankruptcy in 2014
- Economy of the Midwestern United States
- Defunct discount stores of the United States
- Companies formerly listed on the Nasdaq
- American companies disestablished in 2015
- American companies established in 1901
- Retail companies established in 1901
- Retail companies disestablished in 2015
- Five and dimes
- 1901 establishments in Kansas
- 2015 disestablishments in Texas
- 5
- Companies of the United States by year of establishment