Vermont Business Magazine Two large, national, deep-discount chains, with 24 combined stores in Vermont, will merge after selling some stores to maintain competition, according to a settlement between Dollar Tree and Family Dollar with the Federal Trade Commission, Vermont Attorney General Bill Sorrell, and 16 other States. Dollar Tree and Family Dollar operate stores throughout Vermont. Dollar Tree typically prices its merchandise at $1, while Family Dollar stores offer additional merchandise for higher prices. The settlement announced today requires Dollar Tree to sell two Family Dollar stores in Vermont and more than 300 stores across the country to a new competitor.
The stores to be sold will be re-named “Dollar Express”, and become a part of a chain of deep discount stores being launched by Sycamore Partners. In addition, Dollar Tree will be required to notify the Vermont Attorney General’s office of future acquisitions, store relocations or closings.
General Sorrell said, “It is important to maintain competition in Vermont. The sale of two Family Dollar stores, one in in Newport and the other in Morrisville, to Dollar Express will insure a competitive market because those areas will now be served by two independently owned stores.”
The Attorneys General have filed their lawsuit and proposed consent judgment in the Federal District Court for the District of Columbia. Dollar Tree and Family Dollar will pay the State of Vermont approximately $26,000 for the legal fees and costs it incurred in connection with its review of the merger.
Dollar Tree (NASDAQ: DLTR) is headquartered in Chesapeake, Virginia and operates more than 4,200 stores, including 8 stores in Vermont. Family Dollar (NYSE: FDO) is headquartered in Matthews, North Carolina and operates more than 8,000 stores nationwide, including 16 stores in Vermont.
Published: Jul 6, 2015