Family Dollar

2019-04-12T17:45:54Z

ShadowCyclone:

{{Infobox company
| name = Family Dollar Stores Inc.
| logo = Family Dollar logo.svg
| logo_size = 250px
| logo_alt =
| logo_caption =
| logo_padding =
| image = File:Family Dollar, Inner Perimeter Road, Valdosta.JPG
| image_size = 250px
| image_alt =
| image_caption = Family Dollar store in Valdosta, Georgia
| type = [[Subsidiary]]
| industry = [[Retail]], Variety, [[Discount stores|Discount]]
| founded = {{start date and age|1959}}<br/>[[Charlotte, North Carolina]], U.S.
| founder = [[Leon Levine]]
| area_served = United States
| key_people = Gary Philbin, President & [[Chief operating officer|CEO]]<br/>[[Howard R. Levine]], [[Board of Directors|Chairman]]
| products = Clothing, cleaning supplies, home decor, and grocery.
| brands =
| services =
| revenue = {{increase}}[[US$]] 10.489 billion (2014)
| profit = {{decrease}}US$ 284.5 million (2014)
| assets = {{increase}}US$ 3.857 billion (2014)
| num_employees = 60,000 (2015)
| parent = [[Dollar Tree]] (2015–present)
| website = {{URL|https://www.familydollar.com|FamilyDollar.com}}
}}

'''Family Dollar''' is an American [[variety store]] chain. With over 8,000 locations in all states except [[Alaska]], [[Hawaii]], [[Oregon]] and [[Washington (state)|Washington]], it is the second largest retailer of its type in the United States. Family Dollar was headquartered in [[Matthews, North Carolina|Matthews]], a [[suburb]] of [[Charlotte, North Carolina|Charlotte]], [[North Carolina]], until it was acquired by Dollar Tree and headquarters operations were moved to [[Chesapeake, Virginia]].
<ref name=":0">{{Cite news|url=https://www.marketwatch.com/story/dollar-tree-to-close-family-dollar-hq-offer-relocation-to-700-employees-2018-09-18|title=Dollar Tree to close Family Dollar HQ, offer relocation to 700 employees}}</ref>

In June 2014, [[Activist shareholder|activist investor]] and major shareholder<ref name=":1">{{Cite web|url=https://www.sec.gov/Archives/edgar/data/34408/000092846414000058/fdosch13d060614.htm|title=fdosch13d060614.htm|website=www.sec.gov|access-date=2018-07-18}}</ref> [[Carl Icahn]] demanded that Family Dollar be immediately put up for sale.<ref name=":2">{{Cite web|url=https://www.sec.gov/Archives/edgar/data/34408/000092846414000063/fdosch13damd10619ex1.htm|title=fdosch13damd10619ex1.htm|website=www.sec.gov|access-date=2018-07-18}}</ref>

On July 28, 2014, [[Dollar Tree]] announced that it would buy Family Dollar for $8.5 billion.<ref name=":3">{{Cite news|url=https://www.reuters.com/article/2014/07/28/us-family-dollar-st-offer-idUSKBN0FX0SX20140728|title=Dollar Tree to buy Family Dollar to stave off competition|last=Kumar|first=Devika Krishna|work=U.S.|access-date=2018-07-18|language=en-US}}</ref><ref name="cltob-buyout">{{cite news|url=http://www.charlotteobserver.com/2014/07/28/5071476/matthews-based-family-dollar-bought.html|title=Charlotte region loses corporate headquarters in Family Dollar buyout|work=[[The Charlotte Observer]]}}</ref> The sale delivered a windfall to the company's biggest shareholder Carl Icahn, who acquired his 9.4 percent stake in June 2014.<ref name="BidRebuffed"/> On January 22, 2015, Family Dollar shareholders approved the Dollar Tree bid.<ref name=approved>{{cite news|url=https://www.reuters.com/article/2015/01/22/us-family-dollar-st-offer-meeting-idUSKBN0KV1PR20150122|title=Family Dollar shareholders approve Dollar Tree deal|first1=Sruthi|last1=Ramakrishnan|first2=Ken|last2=Otterbourg|work=[[Reuters]]|date=January 22, 2015|accessdate=January 22, 2015}}</ref>

On March 6, 2019, the retailer announced that it will close up to 400 stores nationwide due to heavy pressure from an activist investor.<ref>{{cite news|url=https://www.wcpo.com/news/national/family-dollar-will-close-nearly-400-stores|title=Family Dollar will close nearly 400 stores}}</ref>

==History==
{{refimprove section|date=December 2012}}
Family Dollar was founded in 1959 by [[Leon Levine]], a 21-year-old entrepreneur.<ref>{{Cite news|url=http://northcarolinahistory.org/encyclopedia/family-dollar-stores/|title=Family Dollar Stores - North Carolina History Project|last=http://mangowebdesign.com|first=Website design and web development by Mango Web Design|work=North Carolina History Project|access-date=2017-03-04|language=en-US}}</ref> In November of that year, the company's first store was opened, in [[Charlotte, North Carolina]]. In 1961, their first store in [[South Carolina]] opened, followed by stores in [[Georgia (U.S. state)|Georgia]] and [[Virginia]], which were opened in 1962 and 1965, respectively. During the 1960s, the store company was largely a southern United States operation. By 1969, there were fifty stores in Charlotte alone.

The 1970s were growing years for the store chain. In 1970, Family Dollar's stock went public for the first time, at $14.50 per share. In 1971, the chain's 100th store opened, followed by their 200th in 1974 and their 300th in 1978. Also in 1974, a distribution center was opened in [[Matthews, North Carolina]]. In 1979, Family Dollar stock began trading at the [[New York Stock Exchange]].

In 1981, the chain's 400th store was opened, followed by a 500th store in 1982 and a 700th in 1983. The 1980s saw expansion at a wider scale for the company, and by 1989, 1,500 stores were operating.

The 1990s saw the pace of expansion slow down compared to the 1980s, with 1,000 stores opened. The company opened distribution centers in [[West Memphis, Arkansas]]; [[Front Royal, Virginia]] and [[Duncan, Oklahoma]]. Since 2000, the pace of growth increased significantly, with the addition of about 3,500 new stores, and new distribution centers opening in [[Morehead, Kentucky]]; [[Maquoketa, Iowa]]; [[Odessa, Texas]]; [[Marianna, Florida]]; and [[Rome, New York]].

In 2001, Family Dollar joined the [[S&P 500]] [[stock market index]]. In 2002, the company joined the [[Fortune 500]] list of largest publicly held companies.

When Leon Levine retired in 2003, his son Howard R. Levine succeeded him as [[Chairman of the board|Chairman]] and [[CEO]], keeping this multibillion-dollar company in the family.

In March 2005, Family Dollar restated the company's fiscal 2000 to fiscal 2004 earnings per share downward by 2 cents to 3 cents a year, to correct lease-accounting issues.<ref>{{cite web|url=http://www.highbeam.com/doc/1P1-106637228.html|archive-url=https://web.archive.org/web/20131105214446/http://www.highbeam.com/doc/1P1-106637228.html|dead-url=yes|archive-date=2013-11-05| title=Family Dollar's Quarterly Income Falls}}</ref>

As of August 2011, there were 7,000 stores in 44 states. According to their website, in 2005 Family Dollar opened 500 new stores, 350 more in 2006, and an additional 300 in 2007. According to the Company's 2013 Corporate Profile, in 2010 Family Dollar opened 200 new stores, 300 more in 2011, 475 in 2012, and an additional 500 in 2013. On October 3, 2012, Family Dollar said they will open 500 stores in 2013.<ref>{{cite news|url=http://drugstorenews.com/article/family-dollar-accelerate-store-growth|title=Family Dollar to accelerate store growth|publisher=Drug Store News|date=October 3, 2012|accessdate=October 4, 2012}}</ref> The next day, Family Dollar partnered with Healthways.<ref>{{cite news|url=http://www.dailyfinance.com/2012/10/04/family-dollar-announces-partnership-with-healthway/|title=Family Dollar Announces Partnership with Healthways to Improve Team Members' Health and Well-Being|publisher=DailyFinance|accessdate=October 4, 2012}}</ref> Family Dollar operates 11 distribution centers - the latest of which opened in [[St. George, Utah]] on October 16, 2013.

==Selling pressure==
In March 2011, Family Dollar rejected a takeover offer by [[Nelson Peltz]]'s Trian Fund Management reportedly between $55 and $60 a share.<ref name=post>{{cite news |title=Family Dollar Rejects Buyout Offer From Peltz's Trian, Adopts Poison Pill |work=Bloomberg |date=March 3, 2011 |url=https://www.bloomberg.com/news/2011-03-03/family-dollar-rejects-buyout-offer-from-peltz-s-trian-adopts-poison-pill.html/ |first=Chris |last=Burritt}}</ref>

On June 6, 2014, activist investor Carl Icahn disclosed that his firm, [[Icahn Enterprises]], held a 9.4% stake in Family Dollar.<ref name=":1" /><ref name="icahn-fdo-purchase">{{cite web|url=http://investor.familydollar.com/investors-relations/news-releases/Press-Release-Details/2014/Family-Dollar-Comments-on-Icahn-Letter/default.aspx|title=Family Dollar - Family Dollar Comments on Icahn Letter|publisher=}}</ref> On June 19, 2014, Icahn demanded in an [[open letter]] that Family Dollar be put up for sale immediately.<ref name=":0" /><ref name=":2" /> [[Goldman Sachs]] and other analysts had identified a number of potential buyers.<ref>{{cite web|url=http://www.streetinsider.com/Analyst+Comments/Family+Dollar+(FDO)+Has+Large+Number+of+Potential+Suitors%2C+Says+Goldman+Sachs/9600512.html|title=Family Dollar (FDO) Has Large Number of Potential Suitors, Says Goldman Sachs|work=StreetInsider.com}}</ref><ref>{{cite web|url=https://finance.yahoo.com/news/icahn-sale-urgency-isn-t-143437862.html|title=Icahn’s Sale Urgency Isn’t Family Dollar’s First Rodeo|date=20 June 2014|work=Yahoo Finance}}</ref>

[[File:Family Dollar interior in Gillette, Wyoming.jpg|thumb|upright=0.75|Interior of a Family Dollar in [[Gillette, Wyoming]]]]

As of June 19, 2014, 22% of Family Dollar's shares were controlled by activist investors.<ref name=":0" />

===Acquisition===
On July 28, 2014, [[Dollar Tree]] announced that it would acquire Family Dollar for $74.50 per share, a deal valuing Family Dollar at $8.5 billion, and that Dollar Tree would also assume $1 billion in debt currently owed by Family Dollar, for a total of $9.5 billion.<ref name=":3" /><ref name="wsj-buyout">{{cite web|url=https://www.wsj.com/articles/dollar-tree-to-buy-family-dollar-for-74-50-a-share-1406542575|title=WSJ|publisher=}}</ref> Dollar Tree CEO [[Bob Sasser]] said that Family Dollar CEO Howard R. Levine will remain with the company following the merger and will be appointed to Dollar Tree's [[board of directors]].<ref name="cltob-buyout" /> [[Dollar General]] entered the bidding, shortly thereafter, surpassing Dollar Tree's offer on August 18, 2014,<ref>{{cite web|last1=Davidson|first1=Paul|last2=Shell|first2=Adam|title=Dollar General offers $9.7B for Family Dollar|url=https://www.usatoday.com/story/money/business/2014/08/18/dollar-general-family-dollar/14220237/|publisher=The USA Today|accessdate=18 August 2014}}</ref> $78.50 a share compared to Dollar Tree's offer of $74.50 a share. The enterprise value of the Dollar General bid was $9.7 billion compared to that of Dollar Tree of $9.2 billion, while the quantum return to shareholders was varying as the stock and cash deal valuation was subjected to fluctuations of price of the competing bidders stock. On August 20, 2014 Family Dollar rejected the Dollar General bid, saying it was not a matter of price, but concerns over antitrust issues that had convinced the company and its advisers that the deal could not be concluded on the terms proposed.<ref name="BidRebuffed"/> Days after, Dollar General CEO Rick Dreiling sent a letter to the Family Dollar board of directors claiming that Levine rejected merger requests to protect his job.<ref>{{cite web|last1=Banjo|first1=Shelly|title=Family Dollar CEO Said to Reject Merger Requests to Protect Job|url=https://www.wsj.com/articles/family-dollar-ceo-said-to-reject-merger-requests-to-protect-job-1408600339|publisher=The Wall Street Journal|accessdate=22 August 2014}}</ref> Levine, in a statement, said the Family Dollar board had been analyzing potential antitrust issues that could arise from doing a deal with Dollar General since the start of the year, and that was the reason it was not accepting the Dollar General bid.<ref name="BidRebuffed">{{cite news|title=Family Dollar rejects $9.7 bn acquisition bid by Dollar General|url=http://www.charlottenews.net/index.php/sid/224972437|date=21 August 2014|accessdate=22 August 2014|publisher=''Charlotte News.Net''}}</ref>

On January 22, 2015, Family Dollar shareholders approved the Dollar Tree bid.<ref name=approved/>

Several stores were required to be sold as a condition of the sale. [[Sycamore Partners]] acquired the stores in 2014 under the corporate name Dollar Express. The stores continued to operate under the Family Dollar name. In 2017, [[Dollar General]] acquired Dollar Express and converted the stores.<ref>{{Cite web| title = Dollar Express Chain Sells Out To Competitor Dollar General After 1.5 Years| work = Consumerist| accessdate = 2017-12-23| date = 2017-04-04| url = https://consumerist.com/2017/04/04/dollar-express-chain-sells-out-to-competitor-dollar-general-after-1-5-years/}}</ref>

As a result of Family Dollar's sale to Dollar Tree, some Family Dollar stores have opened in the same plaza, and at times even next door, to Dollar Tree locations.<ref>https://www.reddit.com/r/mildlyinteresting/comments/4xl0o6/i_do_not_understand_why_a_dollar_tree_and_a/</ref>

==References==
{{Reflist}}

==External links==
{{Commons category}}
*{{official website|https://www.familydollar.com/}}

{{VarietyStores}}
{{Authority control}}

[[Category:Companies formerly listed on the New York Stock Exchange]]
[[Category:Discount stores of the United States]]
[[Category:Companies based in Charlotte, North Carolina]]
[[Category:Retail companies established in 1959]]
[[Category:Retail companies disestablished in 2019]]
[[Category:Variety stores]]
[[Category:Companies based in North Carolina]]
[[Category:1959 establishments in North Carolina]]
[[Category:2019 disestablishments in North Carolina]]
[[Category:2015 mergers and acquisitions]]
[[Category:American companies established in 1959]]

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Family Dollar