If you’ve ever found yourself inside of an Alco then you’ve also found yourself inside of a small town. That’s because Alco specializes in small towns and rural communities. But if you’re the type to shop for sofas and manure spreaders under one roof, then you may be disappointed because Alco is in serious trouble.
A Little Bit of Everything
Alco has been around for more than 100 years, and they cater to communities with few other shopping options. So you can find pretty much everything needed to keep your homestead, ranch, or small farm operational.
Unfortunately for Alco, things have been tough recently. The company has cited increased competition and the lagging economy for their economic turmoil. Chains like Family Dollar and Tractor Supply have been rapidly expanding into rural communities in recent years while the onslaught of new Walmart stores continues unabated.
Survival of the Fittest
In an attempt to deal with their financial crisis, Alco has just filed for chapter 11 bankruptcy. Essentially the bankruptcy process will take over the business temporarily to determine how assets can be liquidated and how to attempt to keep the doors open at Alco.
Will Alco Endure?
If Alco can find the right buyer, and an effective bankruptcy strategy is implemented, then all Alco locations could potentially stay in business. However, a more common result of chapter 11 is that the less profitable stores will be closed and only some locations will survive the bankruptcy. But there’s also a chance that the entire operation may have to close its doors for good.
Hope for the Future
General Motors has filed chapter 11 bankruptcy and is now doing quite well. Eddie Bauer filed twice, and Donald Trump has filed four separate times. They’re both alive and kicking. So maybe there’s hope for Alco too.