- Current report filing (8-K)
November 30 2010 - 11:44AM
Edgar (US Regulatory)
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)
November 29, 2010.
Duckwall-ALCO Stores, Inc.
(Exact name of registrant as
specified in its charter)
Kansas
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0-20269
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48-0201080
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(State or other
jurisdiction
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(Commission
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(IRS Employer
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of incorporation)
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File Number)
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Identification No.)
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401 Cottage
Abilene,
Kansas 67410-2832
(Address of principal executive offices) (Zip
Code)
(785)
263-3350
(Registrants 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):
o
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material
pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.05 Costs Associated with
Exit or Disposal Activities
On November 29, 2010, Duckwall-ALCO Stores, Inc.
(the Company) issued a press release announcing that it will close 44
Duckwall stores and redeploy the capital into higher-return ALCO stores. The
Company believes this will better allocate shareholders capital and improve
profitability. The 44 Duckwall stores account for only 3.9% of Company sales
and little or no profit, and the Company believes that making this change will
enable it to focus on maximizing the performance of its 214 currently-operating
ALCO stores. The Company also intends to change its corporate name to ALCO
Stores, Inc., to reflect its new strategic focus. The name change will likely
take place in fiscal 2012.
The 44 Duckwall stores have a total of 267 full- and
part-time associates. Forty-three of the stores will close permanently and one
Duckwall store in Hettinger, North Dakota, will reopen as an ALCO store. The
Company expects to record expenses of approximately $1.8 million during the
fourth quarter for closing costs attributable to severance, lease liability,
inventory liquidation and other related costs. Upon conclusion of the closing
process, the Company expects to redeploy approximately $4.0 million in capital
to the ALCO stores.
Forward-looking Statements
Information provided in this Current Report on Form
8-K contains forward-looking statements, as referenced in the Private
Securities Litigation Reform Act of 1995. Forward-looking statements can
generally be identified by the inclusion of words like will, believe, intend,
expect, plan, project, and similar future-looking terms. Forward-looking
statements reflect the managements current views and projections and should
not be unduly relied upon. Forward-looking statements inherently involve risks
and uncertainties, and, accordingly, actual results may vary materially.
Factors which could significantly change results include but are not limited
to: sales performance, expense levels, competitive activity, interest rates,
changes in the Companys financial condition, and factors affecting the retail
category in general. Additional information regarding these and other factors
may be included in the Companys 10-Q filings and other public documents filed
with the SEC.
Item
7.01 Regulation FD Disclosure.
On November 29, 2010, the
Company issued a press release attached as Exhibit 99.1, announcing the
decision to close 44 Duckwall stores. The information set forth in such press
release, along with the information set forth in Item 2.05 above, is
incorporated into this Item 7.01 by reference.
Item
9.01. Exhibits.
(d) Exhibits
99.1
Press Release
dated November 29, 2010.
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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.
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DUCKWALL-ALCO STORES, INC.
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Date: November 29, 2010
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By:
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/s/ Richard E. Wilson
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Richard E. Wilson
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President and Chief Executive Officer
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INDEX TO EXHIBITS
Exhibit
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Number
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Description
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99.1
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Press Release dated November 29, 2010
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4
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