Dollar General Corp. (DG) to Buy All Dollar Express Stores

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Dollar General Corp. (NYSE:DG) has announced that it will be acquiring all Dollar Express stores.

Dollar General Corp. (DG) to Buy All Dollar Express StoresThe deal will have Dollar General Corp. acquiring all of the 323 Dollar Express locations. Dollar Express is a set of retail chains that were created late in 2015 due to the merger deal between Dollar Tree, Inc. (NASDAQ:DLTR) and Family Dollar. The chain is owned by Sycamore Partners.

Dollar General has not disclosed any terms of the deal with the Charlotte-based company. It is unknown when the acquisition will close, or how much the retail store company paid for the 323 Dollar Express locations, reports MarketWatch.

Dollar General Corp. hasn’t announced what it plans to do with the Dollar Express locations once it acquires them. However, employees of the retail chain have reportedly been told that their last day of employment under Dollar Express will be June 2.

Reports claim that Dollar General Corp. isn’t planning on keeping any of Dollar Express employees. Dollar Express employs roughly 2,700 people in 36 states. Employees are also saying that DG is planning to rebrand all Dollar Express stores under its own name.

The Charlotte Observer attempted to get a statement from Dollar General Corp. about its employment plans for the Dollar Express workers on Monday. DG refused to comment on the matter, though. Dollar Express is reportedly planning to start its liquidation process in the near future.

DG stock is up 2% as of Thursday afternoon, but is down 5% year-to-date.


Article printed from InvestorPlace Media, https://investorplace.com/2017/04/dollar-general-corp-dg/.

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