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Alco Stores Inc Files For Bankruptcy, Shares Fall 70%

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Shares of Alco Stores Inc (NASDAQ: ALCS) plummeted Monday morning following the company's announcement of Chapter 11 bankruptcy filed on Sunday.

Alco shares closed Friday’s session at $1.65 and opened Monday's session at $0.55, down 66 percent.

Within the legal documents, company executives cite the "lingering economic slowdown" as the cause for bankruptcy.

The company plans to liquidate or sell the 113-year-old retail operation.

Wells Fargo, which owns a large portion of the Alco Stores debt, has offered bankruptcy financing to keep the stores healthy during the Chapter 11 proceeding.

 

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