ABILENE, Kan., May 5, 2008 (PRIME NEWSWIRE) -- Duckwall-ALCO Stores, Inc. (Nasdaq:DUCK) today announced a headquarters staff reduction of over 10 percent, the second step in a multiphase program to streamline operations with the goal of improving profitability and return on equity (ROE). As with the Company's announcement on April 14, the cost reductions stem from a comprehensive re-evaluation of Duckwall-ALCO's plans and operations initiated after the changes to the Board of Directors in March of this year.
The Company announced today that 27 positions in the Abilene, Kansas corporate headquarters have been eliminated, including one officer, Kalen Gunderson, Vice President Operations Western Division. The corporate labor cost reductions to-date equate to an annualized savings of approximately $2.5 million. This represents over a 20 percent reduction of fiscal year-end total general office labor costs and over a 10 percent reduction of total general office SG&A (selling, general and administrative) expenses.
"As we explained previously, a thorough analysis of operations by the new Board of Directors and management made it clear that reducing corporate staff was imperative," said Donny Johnson, Interim Chief Executive Officer of Duckwall-ALCO Stores. "Decisions that affect associates' jobs and their families are always difficult, but we are confident these changes will prove very positive for Duckwall-ALCO Stores over the long term. While cutting expenses and streamlining the corporate infrastructure, we have also identified numerous opportunities for improving store operations and the value we offer customers in our stores. Our goal in making these and future operational changes is to dramatically improve profitability and increase shareholder value."
About Duckwall-ALCO Stores, Inc.
Duckwall-ALCO Stores, Inc. is a regional retailer that specializes in meeting the needs of smaller, underserved communities throughout the central United States. The Company offers an exceptional selection of fashionable merchandise, quality products and recognized brand names at reasonable prices. Its specialty is delivering those products with the friendly, personal service its customers have come to expect. With 251 stores across 22 states, Duckwall-ALCO Stores is proud to have continually provided excellent products at good value prices to its customers for 107 years. To learn more about Duckwall-ALCO Stores, Inc., visit www.ALCOstores.com.