Shareholder wants to oust Duckwall-Alco chairman

By Lisa Kerner

Charlotte, N.C., Feb. 14 - Strongbow Capital, Ltd. wants the board of directors of Duckwall-Alco Stores, Inc. to replace its current chairman, Warren H. Gfeller.

According to a schedule 13D filed by Strongbow with the Securities and Exchange Commission, Gfeller "is not providing adequate support for the measures that are needed to enable 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, a prior SEC filing stated.

It was previously reported that Strongbow chairman Raymond A.D. French was dissatisfied 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.

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