UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 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): ~~December~~May 1420, ~~2009~~ 2010

AMERICAN CONSUMERS, INC.

(Exact name of registrant as specified in its charter)

Georgia		0-5815		58-1033765
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

55 Hannah Way, Rossville, Georgia 30741

55 Hannah Way, Rossville, Georgia		30741
(Address of principal executive offices)		(zip code)

(Address of principal executive offices) (zip code)

Registrant’s telephone number, including area code: (706) 861-3347

		N/A
		(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))

oItem ~~Soliciting~~2.03. ~~material~~Creation ~~pursuant~~of toa ~~Rule~~Direct ~~14a-12~~Financial Obligation or an Obligation under ~~the~~an ~~Exchange~~Off-Balance ~~Act~~Sheet ~~(17~~Arrangement ~~CFR~~of ~~240~~a Registrant.~~14a-12)~~

oOn ~~Pre-commencement~~May ~~communications~~21, ~~pursuant~~2010, toAmerican ~~Rule~~Consumers, ~~14d-2~~Inc. (bthe “Company”) and Gateway Bank and Trust Company (the “Lender”) executed documents, dated as of May 20, 2010, to effect a one year renewal of the Company’s $800,000 revolving line of credit, pursuant to which the Company is required to make monthly interest only payments on the outstanding balance, and to repay outstanding principal and accrued interest by May 20, 2011, provided that the Company remains in compliance with the terms of the loan. Borrowings under the ~~Exchange~~revolving ~~Act~~line ~~(17~~of ~~CFR~~credit ~~240~~bear interest at an annual rate equal to the Wall Street Journal prime rate, subject to a minimum annual interest rate of 6.~~14d-2(b))~~0%. In conjunction with this annual renewal, the Company and the Lender also executed a new Business Loan Agreement dated as of May 20, 2010, with terms substantially identical to those of the prior Business Loan Agreement, dated April 25, 2008, between the Company and the Lender.

oThe ~~Pre-commencement~~line ~~communications~~of ~~pursuant~~credit contains a borrowing base provision which limits the maximum outstanding indebtedness to ~~Rule~~forty ~~13e-4~~percent (c40%) of the value of the Company’s inventory, as measured on a quarterly basis. As of May 20, 2010, the Company had an outstanding balance of $800,000 for borrowings under the ~~Exchange~~revolving ~~Act~~line ~~(17~~of ~~CFR~~credit, ~~240~~leaving $0 available to be borrowed as of such date.~~13e-4(c))~~ As it has done in the past, the Company generally will utilize the proceeds from borrowings under the revolving line of credit to fund working capital requirements, including inventory purchases.

~~Item~~The 1Company paid closing costs in the amount of $750 to the Lender in conjunction with this annual renewal of the revolving line of credit.01 Borrowings ~~Entry~~under ~~Into~~the revolving line of credit are collateralized by a ~~Material~~security ~~Definitive~~interest ~~Agreement~~in the Company’s $300,000 certificate of deposit with the Lender and by a security interest in substantially all of the Company’s accounts receivable, inventory, machines and equipment, furniture and fixtures, and proceeds of the foregoing, as well as by the personal guaranty of the Company’s President and Chief Executive Officer. The revolving line of credit includes affirmative and negative covenants and Events of Default which are customary for this type of indebtedness. Included within the foregoing are provisions which generally prohibit the payment of any dividends on the Company’s stock and limit the Company’s ability to make new capital expenditures without the consent of the Lender (subject to an exception for the incurrence of any new indebtedness in an amount less than $50,000).

~~On December~~As ~~14,~~of ~~2009~~May 20, ~~American Consumers~~2010, ~~Inc. (~~the “Company” orwas ~~“ACI”)~~also ~~and~~indebted ~~Gateway Bank~~to ~~and~~the ~~Trust~~Lender ~~Company~~in (the ~~“Lender”)~~aggregate ~~entered~~principal ~~into~~amount aof ~~letter~~(A) ~~agreement~~$73,882 pursuant to ~~which~~a ~~the~~60-month ~~Lender~~term ~~agreed~~loan toin ~~irrevocably~~the ~~waive~~original ~~any~~amount ~~default or event~~ of ~~default~~$180, as000 ~~well~~initially asentered ~~any~~into ~~right~~when tothe ~~cease~~Company ~~making~~moved ~~loan~~its ~~advances~~primary orbanking ~~disbursing~~relationship ~~loan~~and ~~proceeds under~~lending ~~any~~arrangements ofto the ~~Company’s~~current ~~credit~~Lender ~~arrangements~~in ~~with~~May ~~the~~2007 ~~Lender,~~and ~~arising~~(B) ~~from~~$256,122 ~~or in~~pursuant ~~connection~~to ~~with~~a ~~the~~total ~~death~~of onsix ~~November~~five-year ~~20,~~term ~~2009~~notes ofincurred ~~Michael~~in A.connection ~~Richardson,~~with the ~~Company’s~~ ~~former~~facility ~~Chairman~~provided ofby the ~~Board,~~Lender ~~President~~to ~~and~~fund ~~Chief~~the ~~Executive~~recently ~~Officer, who~~completed ~~also~~upgrades ~~was~~of acash ~~personal~~register ~~guarantor~~and onscanning systems in all of the Company’s ~~credit~~grocery ~~arrangements with the Lender~~stores. ~~The~~All ~~foregoing description~~ of ~~the~~such ~~letter~~indebtedness ~~agreement~~includes ~~is qualified~~terms byas ~~reference~~ to ~~the~~covenants, ~~full~~interest ~~text~~rate ofand ~~the~~security ~~document,~~provisions which isparallel ~~filed~~those asof ~~an exhibit~~the torevolving ~~this~~line ~~report~~of credit.

Item 9.01	Financial Statements and Exhibits.
(d)	Exhibits

The foregoing description of the annual renewal of the revolving line of credit and the related security documents is qualified by reference to the full text of the documents, which are filed as exhibits to this report.

Exhibit Number	Description
10.55	Letter Agreement, dated as of December 14, 2009, between the Company and Gateway Bank and Trust Company, Concerning Waiver of any Default Resulting from Death of Guarantor.

Item 9.01

Financial Statements and Exhibits

The following Exhibits are filed pursuant to Item 9 of this Report:

Exhibit No.		Description
10.56		Business Loan Agreement between the Company and Gateway Bank and Trust Company, dated as of May 20, 2010, for $800,000 Revolving Line of Credit. Filed herewith.
10.57		Promissory Note between the Company and Gateway Bank and Trust Company, dated as of May 20, 2010, for renewal of $800,000 Revolving Line of Credit. Filed herewith.
10.58		Commercial Security Agreement between the Company and Gateway Bank and Trust Company for renewal of $800,000 Revolving Line of Credit, dated as of May 20, 2010. Filed herewith.
10.59		Assignment of Deposit Account between the Company and Gateway Bank and Trust Company for renewal of $800,000 Revolving Line of Credit, dated as of May 20, 2010. Filed herewith.
10.60		Letter Agreement, dated as of May 20, 2010, between the Company and Gateway Bank and Trust Company, related to Business Loan Agreement and Promissory Note, each dated as of May 20, 2010. Filed herewith.

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.

	AMERICAN CONSUMERS, INC.
Date: May 26, 2010	AMERICAN CONSUMERS, INC.
Date: December 16, 2009	By:	/s/ Paul R. Cook
	By:	/s/ Paul R. Cook
		Paul R. Cook
		Chief Executive Officer
		President and Chief Executive Officer

Filing Compare · AMERICAN CONSUMERS INC