A large shareholder of Duckwall ALCO Stores Inc. (NDAQ:DUCK) recommended several strategic changes for the company in a recent telephone conversation with Chairman Warren Gfeller, according to a Schedule 13D/A filing with the SEC. Shareholders and analysts are hoping that this could be a turning point for the company.

Strongbow Capital, which owns 14.2 percent of the company, suggested that the company expand the size of the board by one member and create an executive committee of the board that would be authorized to exercise all powers and authority of the board in the management of the business.

The hedge fund suggested that this executive committee work to reduce average inventory levels, reduce SG&A expenses and reduce losses from shrinkage. Strongbow also recommended that its own representatives occupy the additional board seat and be appointed to the executive committee.

Shareholders are hoping that this move can help bring accountability back to management and help the retailer improve its balance sheet and cash positions. It will be interesting to see if the company agrees with Strongbow and implements these changes. If so, this is definitely a stock worth watching!

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