Dollar General, which is acquiring the Charlotte chain of discount stores called Dollar Express, on Thursday provided a glimpse of what it plans to do with the chain’s 322 locations, which currently are branded as Family Dollar stores.
In a quarterly earnings report, Tennessee-based Dollar General said that it will re-banner those stores with its own name by the end of November. There are two in Charlotte that will be affected – one 1437 E. Sugar Creek Road, and another at 5300 South Blvd.
Dollar General announced earlier this year its proposal to buy Dollar Express from Sycamore Partners, the New York private equity firm that also owns Charlotte-based Belk. Dollar General said it expects the deal to close in June.
The company said the acquisition of the Dollar Express stores will be “modestly accretive” to its earnings for the fiscal year, meaning the deal will add value for Dollar General. The company also anticipates a 2 cents per share charge in the second quarter.
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Nearly 2,800 employees at the Dollar Express/Family Dollar store chain, which spans 36 states, are losing their jobs as a part of the deal.
Sycamore bought the 320-plus chain discount chain from Dollar Tree to satisfy antitrust concerns amid Dollar Tree’s acquisition of Matthews-based Family Dollar in 2015. Before it decided to sell to Tennessee-based Dollar General, Sycamore was about to re-banner the stores from Family Dollars into Dollar Expresses.