Alco Stores Files Bankruptcy; Owes Wells Fargo Group $93.5MM
Small town retailer Alco Stores filed for Chapter 11 bankruptcy with plans to liquidate or sell the 113-year-old retail operation.
According to bankruptcy court documents, Alco owes a bank group lead by Wells Fargo as administrative agent and collateral agent $93.5 million encompassing a $76.1 million revolver, a $12.7 term loan and a real estate term loan of $4.75 million under a pre-petition senior credit agreement.
Alco is seeking court approval for a DIP facility consisting of $110.0 million revolver and a $12.7 million term loan that will be provided by a bank group led by Wells Fargo as administrative agent, collateral agent and term loan agent.
The bankruptcy court documents also show that a bid submitted by a joint venture among Tiger Capital Group, SB Capital Group and Great American Group was the most favorable offer for the debtors and presented the best opportunity to maximize value for the estates through store closing sales.