The Kansas Public Employees Retirement System's efforts to cut back on risky investments is putting the Duckwall-Alco Stores Inc. retail chain on the verge of liquidation.
The Abilene-based retail chain, which employs about 5,000 people in 12 states, needed a $2 millon cash infusion from KPERS by Tuesday to pull out of federal bankruptcy proceedings and remain in business, according to Kenneth H. Koger, president of Reimer & Koger Associates Inc. Reimer & Koger is managing investments for KPERS.
However, KPERS has declined to supply the Duckwall-Alco the funds because of a decision Friday by the KPERS trustees not to put any more money into the kind of business loans that have already cost it millions of dollars.
Koger said that decision will leave Duckwall-Alco's largest creditor, General Electric Capital Corp., free to force the chain to liquidate and close its stores.
Duckwall-Alco's top executives declined to comment Monday and Tuesday.