Holder to Nominate Duckwall Directors

In a filing with the Securities and Exchange Commission, Strongbow said that the board has not taken satisfactory steps to improve shareholder value and that the makeup of the board should change in order for shareholders to receive a "reasonable return on their investment."

Strongbow beneficially owns 543,517 shares, or a 14.3 percent stake in the Abilene, Kan.-based company.

In November, Strongbow said it might push for a sale of the company or nominate a slate of directors at the 2008 annual meeting if the company did not make progress in addressing its concerns.

Strongbow had previously demanded that the company control selling, general and administrative expenses or reduce average inventory levels.

In a September filing, Strongbow successfully urged the company to appoint a representative to the board, but Duckwall-ALCO did not adopt Strongbow's proposal to create an executive committee to oversee cost and inventory reductions.

Duckwall-ALCO shares fell 43 cents to $21.34.