Continued struggles integrating Family Dollar leads to activist challenge
In 2021, activist investor Mantle Ridge acquired a 5.7% stake in the company with a purchase of $1.8 billion in stock. The move came as the company sought to reverse Dollar Tree’s struggles against its largest competitor, Dollar General, following its difficulties integrating the Family Dollar stores. In 2021, Mantle Ridge nominated 11 new board members in an effort to alter business strategy. In early 2022, the company reached a settlement with the activist investor, adding seven new directors to its board, including the former CEO of Dollar General.
COVID|Competition|New Activity|Structural|M&A|Discontinued ActivityIn response to volatile demand in the wake of the first COVID-19 surge, the company undertook a comprehensive cost reduction program, aimed at shoring up labor and supply costs.
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