Dollar Express Seeks FTC Approval for Dollar General Acquisition
GOODLETTSVILLE, TN – As Dollar General continues to move towards its proposed acquisition of Dollar Express, Dollar Express has announced that it will be closing all of its stores pending the approval of the banner's sale. All 323 stores throughout the United States will be closed by June 30.
Dollar Express, currently owned by Sycamore Partners, said in a notice to the N.C. Commerce Department that the decision was a “difficult one,” according to The Charlotte Observer. In the federal filing, the company stated that without a sale of the chain it no longer had a viable future as a standalone company.
“The company’s decision is certainly not a reflection on the store team, and we appreciate your efforts to make the store successful,” said a letter from Dean Williamson, Head of Human Resources at Dollar Express, that was distributed to all Dollar Express employees to notify them of the closures. The letter also reiterated that their services would still be needed until the closures were enacted.
As part of the original purchase of the stores by Sycamore Partners, the FTC required the company to obtain its approval if it decided to sell the stores within three years of the initial purchase agreement. Sycamore Partners, according to Home World Business, also asked the FTC to shorten the public comment period to 15 days, thus allowing for a faster decision by FTC.
As we reported previously, the Dollar Express chain was born of a 330-store divesture by Family Dollar as the banner was acquired by Dollar Tree in 2015. The new chain, purchased by Sycamore Partners, was originally launched as part of a new concept.
What's next for Dollar Express and Dollar General? AndNowUKnow will keep you apprised.