ALCO Stores wins bankruptcy court approval for plan of liquidation

By Caroline Salls

Pittsburgh, June 4 – ALCO Stores, Inc.’s plan of liquidation was confirmed on June 4 by the U.S. Bankruptcy Court for the Northern District of Texas.

As previously reported, ALCO had an agreement with a joint venture comprised of Tiger Capital Group LLC, SB Capital Group LLC and Great American Group LLC to conduct going-out-of-business sales that began on Nov. 21, 2014.

In addition to the store-closing sales, ALCO received court approval to sell a distribution center located in Abilene, Kan., to Orscheln Supply LLC for $3 million in December.

The company also sold two separate real property assets located in Moab, Utah, and Sierra County, N.M., for $1.38 million and $300,000, respectively.

The liquidation plan calls for the establishment of a liquidating trust to collect and distribute all monetized assets of the estate and to pursue all causes of action.

Specific treatment of claims under the plan include the following:

• Holders of secured claims will be paid in full in cash;

• Holders of general unsecured claims will receive a proportionate share of cash proceeds available in the liquidating trust; and

• Holders of subordinated claims and all equity interest claims will receive no distribution.

ALCO is a Coppell, Texas-based broad-line retailer primarily operating in underserved communities. The company filed for bankruptcy on Oct. 12, 2014 under Chapter 11 case number 14-34941.

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