ABILENE, Kan., Feb. 15, 2005 (PRIMEZONE) -- Duckwall-ALCO Stores, Inc. (Nasdaq:DUCK) announces it has engaged two new business service providers to help lower benefit plan expenses and improve corporate communications.
As part of the Company's aggressive efforts to reduce selling, general and administrative (SG&A) expenses, Duckwall-ALCO Stores has retained RJ Dutton, Inc. as its employee benefits advisory firm. RJ Dutton, headquartered in Kansas City, Mo., has a track record of helping large employers provide exceptional employee benefit programs while significantly reducing their related expenses. The benefits advisory firm specializes in creating plans that include a self-funding component. RJ Dutton will assess Duckwall-ALCO's current plan over the coming months and make recommendations to lower benefit plan expenses. The contract with Duckwall-ALCO's former benefits insurance broker will terminate on March 1.
To improve Duckwall-ALCO Stores' communication with investors and the business community, the company has retained Hagen and Partners of Leawood, Kan. Hagen and Partners will assist the Company with its corporate communications and investor relations efforts, replacing the Company's current investor relations firm. Hagen and Partners provides communications services to a number of privately held and public companies.
"We are very pleased to engage these two firms," said Warren Gfeller, Chairman of the Board of Duckwall-ALCO Stores. "We are confident that RJ Dutton and Hagen and Partners can help us implement cost-effective, yet successful programs in their respective areas of expertise."
Gfeller added, "As we continue our search for a new CEO, our Board of Directors is committed to performance improvement in all aspects of our business. Our primary focus is to increase our return on assets and return on shareholder equity. We expect management to develop plans for fiscal '06 that substantially improve the management of investment in inventories and which aggressively challenge our expenses. At the same time, we must find ways to increase same store sales and execute quickly on growth opportunities. Finally, we need to insure that our capital structure is best suited to the needs of the business and that it optimizes benefits to our shareholders."
Duckwall-ALCO Stores, Inc. is a leading regional retailer that specializes in offering a wide variety of products at reasonable prices to the underserved communities of America. Founded in 1901 by A.L. Duckwall as a general merchandising operation in Abilene, Kan., Duckwall-ALCO is known for its convenient locations and for its friendly, personal service. The company has 266 stores in 21 states across the central United States, operating under two names, ALCO and Duckwall. ALCO discount stores offer a full line of merchandise, while Duckwall variety stores serve smaller communities, offering a smaller selection.
This press release contains forward-looking statements, as referenced in the Private Securities Litigation Reform Act of 1995 (the "Act"). Any forward-looking statements are made by the Company in good faith, pursuant to the safe-harbor provisions of the Act. These forward-looking statements reflect management's current views and projections regarding economic conditions, retail industry environments and Company performance. Factors, which could significantly change results, include but are not limited to: sales performance, expense levels, competitive activity, interest rates, changes in the Company's financial condition and factors affecting the retail category in general. Additional information regarding these and other factors may be included in the Company's quarterly 10-Q filings and other public documents, copies of which are available from the Company on request.