Stacey Widlitz of SW Retail Advisors analyzes why retail expenses are lower than those in February on “The Claman Countdown”.
Dollar Tree sells his family business in dollars while the discount chain store is trying to overthrow its assembly losses under a new leader.
Dollar Tree agreed to sell his family business in dollars to capital companies Brigade Management Management and Macellum Capital Management for around 1 billion dollars, the company announced on Wednesday in the fourth quarter.
The agreement should conclude in 90 days, the family business in dollars remaining in Chesapeake, Virginia.
Dollar Tree to close around 1,000 family dollars stores
Sale at the consortium of investor in investment is a fraction of approximately $ 9 billion that the company paid in 2015, when it escapes the general dollar for the brand.
A sign is displayed in front of a family store on March 13, 2024 in Fairfield, California. (Justin Sullivan / Getty Images / Getty Images)
The CEO of Dollar Tree, Mike Creedon, who took the bar in December 2024, said that the sale in family dollars will allow the company to “devote us fully to growth, profitability and long -term capital yields”.
“This is an important step in our multi -year transformation course to help us reach our potential,” said Creedon, adding that the company will continue to grow and optimize the Dollar Tree activity.
The company plans to stimulate this growth thanks to an “extended assortment, openings of new important stores in the United States and strategic transactions that increase our growth strategy,” he added.
In December, the company increased its sales forecasts by year after reporting profits and sales that exceeded the expectations of Wall Street, despite the loss of the chief of finance. Earlier this month, the company announced that Stewart Glendinning would become the new CFO, after having previously focused on business-scale transformation initiatives, in particular by examining strategic alternatives for the family business.
A cyclist passes in front of a family store in the Humboldt Park district on August 2, 2022 in Chicago. (Scott Olson / Getty Images / Getty Images)
The company faced consecutive losses while demand has decreased. Although the stores took advantage of because consumers were confronted with an increase in costs, they had trouble generating traffic due to strong competition between the Walmart, Target and Fast Fashion retailers like Temu and Shein.
To fight against this, the company began to reduce operations, in particular with the Family Dollar stores, which had supported softer sales due to the unexpected Recall costs Various over -the -counter drugs and medical devices in nearly two dozen states in 2023.
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Last year, the company announced that it was closing nearly 1,000 stores, including 600 of its Family Dollar stores, in the first half of 2024. The company also declared that 370 other family stores and 30 trees of 30 dollars would close in the coming years once their leases have expired.
Dollar Tree shares are down more than 40% over a year.
JPMorgan Securities LLC and Davis Polk & Wardwell LLP advise Dollar Tree, while Jefferies LLC is the main brigade and Macellum financial advisor.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| Dltr | Dollar Tree inc. | 72.75 | +5.62 |
+ 8.36% |
RBC Capital Markets also advises the acquisition of the family dollar. Paul, Weiss, Rifkind, Wharton & Garrison LLP provide a legal advisor for the transaction, and Wells Fargo, RBC Capital Markets and Whitehawk Capital Partners provide funding.
