Dollar Tree, which acquired Family Dollar for $8.5 billion in 2015, has experienced a combined operating loss of $2.9 billion from the acquisition. The turnaround for Family Dollar has been on shaky ground for several quarters, and Citi analysts believe that the decision to explore strategic alternatives indicates management's lack of confidence in fixing Family Dollar, suggesting deeper structural issues. CEO Richard Dreiling stated that now is the right time to review strategic alternatives to determine the best operational and ownership structure to support Family Dollar's transformation. According to the New York Times, Family Dollar is struggling while other dollar stores thrive.
Dollar Tree $DLTR turnaround challenges https://t.co/ECTLxSy3yr
🇺🇸 Why Family Dollar is struggling while other dollar stores thrive https://t.co/Rk4ZlfgPoU
$DLTR CEO Richard Dreiling: "We believe now is the right time to conduct a thorough review of strategic alternatives for Family Dollar, so we can determine the proper operational and ownership structure to best support and enable its transformation." https://t.co/N4Ftar4ANc
CITI: ".. While the [Family Dollar] turnaround has been on shaky ground for several qtrs, we believe the decision to explore strategic alternatives shows that mgmt lacks confidence in the FD fix, signaling more structural issues than previously expected. .. the story is becoming…
Dollar Tree paid $8.5 billion for Family Dollar in 2015. Since that time, the acquisition has generated a $2.9 combined billion operating loss. Not what you'd call a good investment. I spoke to New York Times about the botched deal... https://t.co/hHUOTCe8f5