Duckwall-Alco shareholder pushes for change, seeks board representation

By Lisa Kerner

Charlotte, N.C., March 4 - Strongbow Capital, Ltd. and its affiliates said Duckwall-Alco Stores, Inc.'s operating performance is deteriorating "at an alarming rate" based on fiscal 2008 estimated results released on Friday.

The investors blame chairman Warren H. Gfeller and director Robert L. Ring for the results, according to a schedule 13D filing with the Securities and Exchange Commission.

Strongbow wants an immediate change in Duckwall-Alco's leadership and requested that the company's board of directors:

• Immediately replace Gfeller with Royce Winsten as chairman of the board;

• Immediately obtain the resignations of Gfeller and Ring from the board; and

• Fill the resulting board vacancies with individuals recommended by Strongbow, including Strongbow chairman Raymond A.D. French.

French has been critical in the past of 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.

In a Feb. 19 SEC filing, Strongbow said it intended to nominate a slate of nominees to replace certain board members at the next annual meeting of stockholders.

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

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