8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) March 27, 2008

Duckwall-ALCO Stores, Inc.

(Exact name of registrant as specified in its charter)

Kansas	0-20269	48-0201080
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

401 Cottage

Abilene, Kansas 67410-2832

(Address of principal executive offices) (Zip Code)

(785) 263-3350

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01. Other events.

On March 27, 2008, Duckwall-ALCO Stores, Inc. (the “Company”) terminated its engagement of William Blair & Company, who had been acting as the Company’s financial advisor since January 9, 2008.

The Company issued a press release announcing the termination of this engagement on March 31, 2008.  A copy of the press release is furnished herewith as Exhibit 99.1, and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1       Press Release dated March 31, 2008, furnished solely for the purpose of incorporation by reference into Item 8.01.  

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

DUCKWALL-ALCO STORES, INC.

Date: April 1, 2008	By: /s/ Donny R. Johnson
		Donny R. Johnson
		Interim President and Chief Executive Officer

INDEX TO EXHIBITS

99.1 Press Release dated March 31, 2008, furnished solely for the purpose of incorporation by reference into Item 8.01.

EX-99

FOR IMMEDIATE RELEASE

DUCKWALL-ALCO STORES TERMINATES AGREEMENT WITH

WILLIAM BLAIR & COMPANY

Abilene, Kan. (March 31, 2008) – Duckwall-ALCO Stores, Inc. (NASDAQ: DUCK) has announced that the agreement it had entered into on January 9, 2008 with William Blair & Company, LLC has been terminated. The agreement, designed and entered into by the Company prior to the settlement of the threatened proxy contest, no longer serves its intended purpose.

Royce Winsten, Duckwall-ALCO’s Chairman of the Board, stated “We at Duckwall–ALCO Stores wish to thank the professionals at William Blair & Company for the good work they have done and contributions they have made to the Company’s ongoing drive to improve its financial performance.”

About Duckwall-ALCO Stores, Inc.

Duckwall-ALCO Stores, Inc. is a regional retailer that specializes in meeting the needs of smaller, underserved communities throughout the central United States. The Company offers an exceptional selection of fashionable merchandise, quality products and recognized brand names at reasonable prices. Its specialty is delivering those products with the friendly, personal service its customers have come to expect. With 260 stores across 22 states, Duckwall-ALCO Stores is proud to have continually provided excellent products at good value prices to its customers for 107 years. To learn more about Duckwall-ALCO Stores, Inc. visit www.ALCOstores.com.

###

For more information, contact:

Jon A. Ramsey

Vice President – Controller

Interim Chief Financial Officer

785-263-3350 x221

e-mail: jramsey@ALCOstores.com

website: www.ALCOstores.com

or

Debbie Hagen

Hagen and Partners

913-652-6547

email: dhagen@hagenandpartners.com