Retail

Alco Stores Files for Chapter 11

October 13, 2014

Alco Stores Inc. filed for chapter 11 protection yesterday with plans to liquidate or sell the 113-year-old retail operation, the Wall Street Journal reported today. The filing came not long after the board of directors was replaced as the result of a proxy fight that saw shareholders clamoring for improved results at Alco, which operates 198 discount general merchandise stores in 23 states. In court papers, Alco blamed the effects of the “lingering economic slowdown” on its customers, many of whom are living on fixed or low incomes in rural areas. While it has positioned its stores to avoid head-to-head competition with larger discount chains, Alco said it couldn’t escape the effects of economic distress in the U.S. The bankruptcy filing puts about 3,000 jobs on the line, most of them in stores in areas of Texas, Kansas, Colorado and other states, located in small communities and sparsely populated regions. Alco has lined up a stalking-horse liquidation bid from a joint venture made up of Tiger Capital Group, LLC, SB Capital Group, LLC, and Great American Group WF, LLC, court papers say.

RadioShack Said to Reach $590 Million Refinancing Agreement

October 3, 2014

RadioShack Corp., the electronics chain trying to stave off bankruptcy, reached an agreement with a consortium led by Standard General LP to refinance about $590 million of loans to re-stock ahead of the holidays, Bloomberg News reported today. Standard General, a New York-based hedge fund, will lead a group of lenders to refinance debt outstanding under a $535 million asset-backed revolving credit line from GE Capital, the lending arm of General Electric Co. Last month, Standard General said in a filing it’s working to improve RadioShack’s liquidity ahead of the holiday season. The fund, RadioShack’s largest investor, entered into an agreement lasting until June 2015 that prevents it from taking over the board or proposing an acquisition or restructuring without RadioShack’s consent.