Duckwall-ALCO Stores, Inc. Announces New Credit Facility

Duckwall-ALCO Stores, Inc. DUCK today announced that it has entered into a $120 million five-year revolving credit agreement with Wells Fargo Capital Finance, part of Wells Fargo & Company WFC. The new credit facility replaces an existing $120 million credit agreement with Bank of America, N.A. and Wells Fargo Retail Finance, LLC executed in February 2010. Under the new Wells Fargo Capital Finance credit agreement, the Company will recognize many benefits, including a 150 basis point reduction in interest rates, access to more availability through an increase of advance rates on the collateral, a streamlined treasury management process and an extended term. Rich Wilson, President and Chief Executive Officer, said, "We are very pleased with our partnership with Wells Fargo Capital Finance, and this agreement is a testament to our strategy and Duckwall-ALCO's recent accomplishments. The new facility not only provides additional flexibility, but also reduces our borrowing costs. While we are very focused on growing sales in our stores, this new credit facility shows our continued commitment to reduce expenses in all areas. It is an exciting time to be at Duckwall-ALCO, and we look forward to continuing our long-term partnership with Wells Fargo Capital Finance."