Three years after buying Family Dollar, Dollar Tree is closing the Matthews headquarters of the retail giant started by the Levine Family, a move that will affect 700 local jobs. Another roughly 200 jobs are being eliminated as part of the move.
In a statement Tuesday, Dollar Tree, said it is offering about 700 Family Dollar employees the opportunity to relocate to its consolidated headquarters in Chesapeake, Va. The company said will be provide job transition benefits and outplacement services to the affected workers.
All Matthews employees were notified of the move in a town hall meeting Tuesday morning. Dollar Tree says the consolidation of its headquarters is expected to be completed by fall 2019.
The closure of the Family Dollar headquarters marks the end of another chapter for the formerly local retailer.
Leon Levine, then 22 years old, opened the first Family Dollar store on Central Avenue in 1959 with only a $6,000 investment that represented all of his assets. The Levine family grew the dollar store into a retail giant over the next several decades, expanding even during the recession.
Dollar Tree acquired Family Dollar in July 2015 for about $9.1 billion, a move that brought a fresh wave of uncertainty for employees at the Family Dollar headquarters in Matthews. At the time, Dollar Tree said it would maintain the local corporate offices.
In early 2016, Howard Levine, son of founder Leon Levine, stepped down as Family Dollar’s CEO, drawing to a close nearly five decades of family executive leadership at one of Charlotte’s best-known corporations.
“By bringing our teams together into one location, we will further improve our ability to support our stores more effectively through enhanced collaboration, communication and teamwork,” said Gary Philbin, Dollar Tree’s CEO, in a statement.
“The completion of our expanded headquarters in Virginia will facilitate the most important phase of the integration and we are excited about the opportunities ahead for the Dollar Treeand Family Dollar banners.”
Analysts have long said that Dollar Tree could slash jobs at Family Dollar as a way of trimming costs. About a year after buying Family Dollar, Dollar Tree laid off about 370 Family Dollar corporate employees in Matthews as a way to eliminate redundancies in its support functions.
Dollar Tree’s consolidation of its corporate functions comes as the retailer was expanding its corporate offices in Virginia.
In August 2016, Dollar Tree said it was moving forward with a plan to develop 70 acres at its Chesapeake headquarters. The plan, first announced in 2013, was put on pause during the acquisition process. Dollar Tree said the additional space will allow it to expand by at least 100 new jobs a year over the next six years. The new corporate offices include a 12-story, 510,000 square-foot office tower.
Dollar Tree spokesman Randy Guiler said the Family Dollar distribution center in Matthews is unaffected by the decision to close the Family Dollar headquarters in Matthews.