Serving Clovis, Portales and the Surrounding Communities

ALCO files Chapter 11 bankruptcy

Staff report

ALCO Stores, Inc., with outlets in Tucumcari and Muleshoe, has

declared bankruptcy.

Local stores will continue to operate while the bankruptcy proceeds, officials said.

ALCO, based in Coppell, Texas, filed for Chapter 11 bankruptcy in Dallas U.S. District Court on Oct. 12.

A report from Reuters News Service said ALCO plans to sell successful stores but shut down others. Tucumcari and Muleshoe store managers were not available Friday to comment on whether a decision has been made on the fate of either store.

ALCO has secured as much as $110 million in revolving credit through Wells Fargo Bank in order to continue operations while bankruptcy proceedings continue, according to a document filed with the Federal Securities and Exchange Commission.

A joint venture of financial firms has agreed to sell specific inventory and merchandise, including fixtures and furniture, from stores that will be shut down, according to other SEC filings.

ALCO’s shares, sold on the NASDAQ stock market, have fallen from $13.98 per share to 30 cents a share in the past year. In the quarter that ended Sept. 30, ALCO recorded a net loss of 5.6 percent of sales. Its 2013 profit margin was two-tenths of 1 percent of sales.

ALCO Stores, Inc. was established in 1901 in Abilene, Kansas. ALCO operates about 200 stores in 23 states, focusing on underserved markets, company documents show.