Family Dollar to Get Rid of 1K Stores

The bad news keeps coming for Family Dollar, which will see nearly 1,000 stores of its more than 8,000 stores shuttered. The news came Wednesday from parent company Dollar Tree, which announced the discount chain will close 600 stores by the end of June, and another 370 over the next few years as their leases end. Dollar Tree says it will also let the leases run out on 30 of its own stores. More:

• The numbers: Dollar Tree's $8.5 billion acquisition of Family Dollar in 2015 isn't bearing the expected fruit. In the quarter ending Feb. 3, Dollar Tree "slashed the value it assigned to Family Dollar," reports the Wall Street Journal, "taking a $950 million impairment against the trade name and a $1.07 billion goodwill charge. It also booked more than $594 million of charges tied to closing, relocating or rebranding stores." The company anticipates full-year sales will clock in at $31 billion to $32 billion, which largely syncs with Wall Street expectations.

• Context: As CNN reports, "The combined company hoped that by joining forces, it could grow its customer base, reduce costs and fend off bigger retailers like Dollar General and Walmart. But Dollar Tree has struggled to integrate Family Dollar." It notes many stores are not in the best shape despite extensive renovations carried out by Family Dollar.

(More Family Dollar stories.)