Small-town discount retailer ALCO Stores filed for Chapter 11 bankruptcy protection on Sunday, but says it plans to stay in business while it reorganizes.
The company filed for bankruptcy in the U.S. Bankruptcy Court for the Northern District of Texas, and said it had $222 million in assets and $162 million in liabilities in July. ALCO said Wells Fargo intends to provide it with a $110 million revolving credit facility and a $12.6 million secured term loan so it can repay some debts and continue operating. Those terms will be reviewed by the bankruptcy court.
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ALCO Stores Inc. has 198 stores in 23 states. The Coppell, Texas, company has about 3,000 employees.
The company changed its name from Duckwall-Alco in 2012.