Family Dollar's 'scheme to kill' Charlotte retailer cost thousands of jobs, suit says
In the latest twist in a long-running dollar-store drama, the Charlotte-based retailer Dollar Express is suing Family Dollar and parent company Dollar Tree for setting out to “kill Dollar Express” and ultimately putting the new chain out of business.
Dollar Express is the chain started by private equity group Sycamore Partners when it bought more than 320 stores from Matthews-based Family Dollar in 2015. Family Dollar had to sell the stores for antitrust reasons when it was acquired by Virginia-based Dollar Tree.
In its suit, Dollar Express alleges that Dollar Tree and Family Dollar sabotaged the chain of stores that it sold to Dollar Express by hiring and promoting unqualified workers and opening new Family Dollar-branded stores in close proximity to Dollar Express stores – using Dollar Express’s confidential information.
In late March, Sycamore made the surprising move to lay off Dollar Express’ employees and sell the stores to Tennessee-based Dollar General because it could “no longer operate as a viable standalone business.” The suit filed Thursday in Delaware Chancery Court is the first time Dollar Express has laid out its reasons for abandoning the new retail venture less than 18 months after it started.
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