Dollar Tree acquired Family Dollar in 2015 for nearly $9 billion in cash and stock, but the chain has since struggled to perform, the Wall Street Journal reported.
“We are confident we are taking the appropriate steps to reposition our Family Dollar brand,” Dollar Tree CEO and President Gary Philbin said Wednesday in a news release.
The company said it will re-banner 200 Family Dollar stores under the Dollar Tree name in 2019 and that as many as 390 Family Dollar stores will be closed. The company also plans to renovate at least 1,000 stores.
Company officials didn’t immediately identify which stores would be closing, noting, “The total number of stores closed may change depending on the Company’s ability to achieve material rent concessions from landlords.”
Dollar Tree operates more than 15,000 stores in the U.S. and Canada under the Dollar Tree, Family Dollar and Dollar Tree Canada brands.
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