This paper focuses on the target detection problem for colocated MIMO radar with randomly distributed arrays in the presence of compound-Gaussian clutter with unknown Power Spectral Density (PSD). First, we derive the Generalized Likelihood Ratio Test (GLRT) assuming known covariance structure, and then, three different covariance estimation strategies, i.e., Sampled Covariance Matrix (SCM), Normalized Sampled Covariance Matrix (NSCM), and Fixed Point Estimation (FPE) Matrix, are introduced in place of the exact one to make the derived GLRT fully adaptive. Thorough numerical evaluations of the detection performance are provided and discussed.