The Dollar Tree Inc., chain of discount stores will sell two of its properties in Gary because of concerns by federal and state officials that a proposed merger between itself and the Family Dollar Stores Inc., will make it too dominant in the city.
The state Attorney General’s office is one of 16 states cooperating with a Federal Trade Commission agreement that requires some of the Matthews, N.C.-based Family Dollar stores to be sold to a new entity.
In Gary, those include the Family Dollar properties now operating at Diplomat Plaza, 4157 Cleveland St., and at County Market Place, 2535 Garfield St. Officials at both stores on Monday declined to comment about the move.
Those two stores will be sold to Sycamore Partners, which plans to operate them under the name of Dollar Express.
In the case of a former Value Mart store at 3400 W. 15th Ave., now in the process of being converted into a part of the Family Dollar chain, it will remain with the company that is being sold off to Dollar Tree, along with the Family Dollar store at 4301 Broadway.
Dollar Tree, based in Chesapeake, Va., already has stores in Gary at 3528 Village Court and at 2232 Grant St., along with stores in neighboring Griffith and Merrillville.
Indiana officials also are requiring two Family Dollar stores in Indianapolis and one in Fort Wayne to be sold to Sycamore Partners as well. The agreement also requires Dollar Tree to notify federal and state governments in the event of any future store closings or shifts.
Mayoral spokeswoman Lalosa Dent Burns referred questions to the Gary Economic Development Corp., where officials said Monday they were unaware of the settlement and would not comment on how it might impact the city’s economy and ability to attract new businesses.
But state Attorney General Greg Zoeller said he supported the FTC deal because he is concerned the merger would otherwise lessen retail competition in the Indiana communities.
“The several stores impacted in Indiana are important to the everyday options for local residents,” Zoeller said, in a prepared statement. “I wanted to ensure competition remained despite this large merger so that consumers had access to fair prices and the best merchandise.”
Gregory Tejeda is a freelance reporter for the Post-Tribune.
