Dollar Tree swung to a surprise fourth-quarter loss and will close almost 1,000 shops after the discountrate merchant slashed the worth of a competitor chain it obtained nearly a years back.
Dollar Tree strategies to close about 600 Family Dollar shops in the veryfirst half of this year and 370 Family Dollar and 30 Dollar Tree shops over the next anumberof years.
Dollar Tree gotten Family Dollar for more than $8 billion in 2015 after a bidding war with competitor Dollar General, however it has had trouble takingin the chain.
On Wednesday, Dollar Tree stated that it would record a $950 million disability versus the trade name Family Dollar, on top of a $1.07 billion goodwill charge. Family Dollar will invest more than $594 million closing or rebranding shops, basically removing revenues from the vacation season.
“This remarkable cull is the coup de grâce in the rather mishandled acquisition of the Family Dollar chain, which has triggered Dollar Tree absolutelynothing however inconvenience consideringthat it was finished back in 2015,” composed Neil Saunders, handling direc