ALCO to close its stores across 23 states

ALCO Stores, Inc. announced Friday (Nov. 21) that it will close all 198 of its stores in 23 states. ALCO has about a dozen stores in Indiana, including locations in Knox and Winamac.

The company had entered into voluntary Chapter 11 bankruptcy proceedings early last month.

Founded 113 years ago, the company had evolved into a discount retailer that served smaller communities. But in recent years, it had faced increasing competition from other discount retailers.

The U.S. Bankruptcy Court in Dallas on Thursday (Nov. 20) approved an order from the company’s creditors to close all ALCO stores.

According to a news release from the company, the federal bankruptcy court “approved an order today authorizing Tiger Capital Group LLC, SB Capital Group LLC and Great American Group LLC to conduct going-out-of-business sales" in each of ALCO's 198 locations.”

Going-out-of-business sales at the stores began Friday, and the company plans to sell more than $260 million of inventory, fixtures and equipment. The sales are expected to run through Christmas, according to a company spokesman, but the company does not yet know when the stores will close for good. Assets at the company’s 352,000-square-foot distribution center in Abilene also will be sold.

ALCO's headquarters were recently moved to Coppell, Texas, a suburb of Dalla, but the company was founded in 1901 in Abilene, Kan.as a single variety store founded by Alva Lease Duckwall. The store chain specialized in providing essential products for everyday life in small-town America.