Business

2,700 jobs could be cut as Dollar General buys Charlotte discount chain

Dollar Express signage
Dollar Express signage Katherine Peralta

As discounter Dollar General buys the small Charlotte-based chain Dollar Express, up to 2,700 part-time and full-time store employees around the country may be losing their jobs.

Tennessee-based Dollar General confirmed its plans on Monday to buy all 323 discount stores in 36 states from Dollar Express. That’s the chain of former Family Dollar stores owned since late 2015 by the private equity firm Sycamore Partners.

Multiple Dollar Express employees told the Observer they were informed that their last day of employment would be on or around June 2 since Dollar General is not retaining any of them. Stores will begin their liquidation processes soon, said the employees, who asked not to be named for fear of retribution.

The employees said their stores, which still carry the Family Dollar name, will be rebranded as Dollar General stores. The Dollar Express chain operates two stores in Charlotte – one at 1437 E. Sugar Creek Road, and another at 5300 South Blvd.

Last week, the Observer reported that about 100 corporate Dollar Express positions in Charlotte are at stake as a result of the Dollar General takeover. Sources say the deal was unexpected for the corporate employees, some of whom had moved their families to Charlotte from faraway states like Texas, Montana and California.

It remains unclear whether all store and corporate employees will lose their jobs as ownership changes hands. A Dollar General representative would not respond Monday to questions about employment.

Earlier this year, Dollar General, which tried unsuccessfully to buy Matthews-based Family Dollar in 2014, announced plans to add 1,000 new stores and create more than 10,000 new jobs nationwide this year. The retailer said about 500 of those positions would be in North Carolina. It is unclear whether the hiring initiative is related to the Dollar Express deal.

Terms of the Dollar Express deal were not disclosed. The acquisition is subject to certain closing conditions and regulatory approval.

Katherine Peralta: 704-358-5079, @katieperalta

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