DUCK Alco Stores, Inc. (MM)

(c)            On February 22, 2008, Duckwall-ALCO Stores, Inc. (the "Company") issued a press release, incorporated into this Item 5.02 by reference, relating to the resignation of Bruce Dale, the Company's President and Chief Executive Officer. On February 22, 2008 the Company also entered into a Separation and Release Agreement related to Mr. Dale's resignation. The Separation and Release Agreement is incorporated into this Item 5.02 by reference also.

The Company has appointed a search committee to conduct a national search for a new Chief Executive Officer. In the interim, Senior Vice President and Chief Financial Officer, Donny Johnson has been appointed by the Company's Board of Directors to assume the role of interim President and Chief Executive Officer. As part of Mr. Johnson taking on these interim roles his annual salary has been increased from $200,000 to $275,000, otherwise Mr. Johnson will be operating under the same terms and conditions of the Employment Agreement he had earlier executed with the Company. Jon Ramsey has taken on the role of interim Chief Financial Officer while Mr. Johnson completes his new interim position.

Other than arrangements or understandings with directors and officers of the Company acting solely in their capacity as such of as set forth herein, there are no arrangements or understandings between Mr. Johnson and any other persons naming Mr. Johnson an officer. There are no familial relationships between Mr. Johnson and any other officer or director of the Company. Other than his Employment Agreement, since January 28, 2007, neither Mr. Johnson nor any immediate family member of Mr. Johnson has been a party to any transaction or currently proposed transaction in which the Company was or is a participant and the amount exceeds $120,000, and in which Mr. Johnson or any immediate family member had or will have a direct or indirect material interest.