In the latest legal snarl in an ongoing dollar-store drama, Virginia-based Dollar Tree alleges Charlotte-based discount chain Dollar Express and its owners siphoned off funds and failed to pay Dollar Tree over $50 million for goods and services.
Private equity group Sycamore Partners started the Dollar Express chain when it bought roughly 330 stores from Matthews-based Family Dollar in 2015. Virginia-based Dollar Tree was required to sell the Family Dollar-branded stores for antitrust reasons in order to buy the local chain.
Dollar Tree filed its lawsuit last week in Delaware Chancery Court but it wasn’t unsealed until this week.
In another legal volley, Dollar Express filed its own suit last week in which the company alleged Dollar Tree and Family Dollar sabotaged Dollar Express’ business by hiring and promoting unqualified workers, and opening new Family Dollar-branded stores in close proximity to Dollar Express.
In a statement sent to the Observer, Dollar Tree said that it “had nothing to do” with Sycamore’s failure to make Dollar Express a viable business.
Full Content: Reuters
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