Strongbow to nominate slate of nominees for election to Duckwall-Alco board

By Lisa Kerner

Charlotte, N.C., Feb. 19 - Strongbow Capital, Ltd. believes the board of directors of Duckwall-Alco Stores, Inc. failed to take steps to alleviate problem areas identified by Strongbow.

In the past, Strongbow chairman Raymond A.D. French had expressed dissatisfaction with the results of Duckwall-Alco's three-year turnaround program and believed the company's key problem areas were selling, general and administrative expense control, inventory reductions and shrinkage.

The investor, wanting to change the composition of the Duckwall-Alco board, intends to nominate a slate of nominees to replace certain board members at the next annual meeting of stockholders.

Specifically, Strongbow wants to replace current chairman Warren H. Gfeller and Robert L. Ring and have Royce Winsten named chairman of the board, according to an amended schedule 13D filing with the Securities and Exchange Commission.

In a previous SEC filing, Strongbow criticized Gfeller for not supporting needed measures that would allow shareholders to achieve a reasonable return on their investment.

Strongbow owns 543,517 shares, or 14.3%, of the Abilene, Kan.-based discount retailer's outstanding stock.

In December, Strongbow said it intended to nominate, and solicit proxies to elect, a slate of directors at the company's 2008 annual meeting. The investor was also considering a proposal to amend to the company's bylaws to reduce the size of Duckwall-Alco's board of directors.

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