- Current report filing (8-K)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) August 24, 2010.

Duckwall-ALCO Stores, Inc.

(Exact name of registrant as specified in its charter)

Kansas	0-20269	48-0201080
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

401 Cottage

Abilene, Kansas 67410-2832

(Address of principal executive offices) (Zip Code)

(785) 263-3350

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 1.01

Entry into a Material Definitive Agreement.

On August 24, 2010, Duckwall-ALCO Stores, Inc. (the “Company”) entered into an Indemnification Agreement with Richard E. Wilson, its newest director. The Company has previously entered into a substantially similar form of Indemnification Agreement with each of its other four directors, which include Royce Winsten, Raymond A.D. French, Lolan C. Mackey and Dennis E. Logue.

The Indemnification Agreement provides, among other things and subject to certain limitations in the Indemnification Agreement, that the Company will (1) indemnify Mr. Wilson, to the fullest extent permitted by applicable law, if he is, or is threatened to be made, a party to, a witness for or otherwise involved in a Proceeding (as defined in the Indemnification Agreement) as a result of his Corporate Status (as defined in the Indemnification Agreement); (2) in the event that the Company and Mr. Wilson are jointly liable, waive any right of contribution it may have against Mr. Wilson; (3) advance Expenses (as defined in the Indemnification Agreement) to Mr. Wilson; and (4) provide adequate Liability Insurance (as defined in the Indemnification Agreement) for Mr. Wilson. The rights provided to Mr. Wilson under the Indemnification Agreement are in addition to any rights he may have under applicable law and the Company’s Articles of Incorporation and Bylaws, as amended.

A copy of the Indemnification Agreement is attached hereto as Exhibit 99.1, set forth below in Item 9.01 and incorporated herein by reference. The foregoing description of the terms of the Indemnification Agreement is qualified in its entirety by reference to the full text of the exhibit.

Item 7.01 Regulation FD Disclosure.

The information set forth in Item 1.01 is incorporated herein by reference, in its entirety, into this Item 7.01.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits .

99.1	Indemnification Agreement effective as of August 24, 2010 between the Company and Richard E. Wilson.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: August 27, 2010

DUCKWALL-ALCO STORES, INC.

By: /s/ Richard E. Wilson

Richard E. Wilson

President and Chief Executive

Officer