On May 5, 2008, American Consumers, Inc. (the "Company") and Gateway Bank and Trust Company (the "Lender") executed documents dated as of April 25, 2008, to effect a one year renewal of the Company's $800,000 revolving line of credit, with a term of 12 months, 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 April 25, 2009, provided that the Company remains in compliance with the terms of the loan. Borrowings under the revolving line of credit bear interest at an annual rate equal to the Wall Street Journal prime rate, subject to a minimum annual interest rate of 6.0%. The line of credit contains a borrowing base provision which limits the maximum outstanding indebtedness to forty percent (40%) of the value of the Company's inventory, as measured on a quarterly basis. As of April 25, 2008, the Company had an outstanding balance of $120,000 for borrowings under the revolving line of credit, leaving $680,000 available to be borrowed as of such date. As of May 5, 2008, the Company had a zero balance for outstanding borrowings under the revolving line of credit, leaving the full $800,000 available to be borrowed as of such date. 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.

The Company paid closing costs in the amount of $500 to the Lender in conjunction with this annual renewal of the revolving line of credit. Borrowings under the revolving line of credit are collateralized by a security interest 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 personal guarantees of the Company's President and CEO and its Executive Vice President and CFO. 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).

This revolving line of credit was originally entered into last year in conjunction with a new $980,000 credit facility with the Lender, which also included a 60-month term loan in the amount of $180,000 with terms as to covenants, interest rate and security which parallel those of the revolving line of credit. As of May 5, 2008, the remaining principal balance outstanding under the related term loan was $148,485.

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.

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

Exhibit No.   Description

   10.30      Business Loan Agreement and Promissory Note between the Company and
              Gateway Bank and Trust Company, dated as of April 25, 2008, for
              $800,000 Revolving Line of Credit. Filed herewith.

   10.31      Commercial Security Agreement between the Company and Gateway Bank and
              Trust Company for $800,000 Revolving Line of Credit, dated as of April
              25, 2008. Filed herewith.

   10.32      Assignment of Deposit Account between the Company and Gateway Bank and
              Trust Company for $800,000 Revolving Line of Credit, dated as of April
              25, 2008. Filed herewith.

   10.33      Letter Agreement, dated as of May 8, 2008, between the Company and
              Gateway Bank and Trust Company. Filed herewith.