REPORT: Dollar Tree urged to consider selling off Matthews-based Family Dollar

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MATTHEWS, N.C. — It has been more than three years since Dollar Tree bought out the Matthews-based company, Family Dollar.

Now, Channel 9 has learned Dollar Tree could sell off the company.

[ [RELATED: Dollar Tree buying Family Dollar for $8.5 billion] ]

Dollar Tree bought Family Dollar in 2015 for $9 billion and Family Dollar continues to have a large distribution center with hundreds of employees in Matthews, North Carolina.

According to the Wall Street Journal, a large hedge fund, Starboard Value, that owns nearly 2 percent of Dollar Tree is pushing the company to sell Family Dollar with sources saying the integration and turnaround of Family Dollar is not working.

The Wall Street Journal reported the combined company has lost 15 percent of its share value over the last year.

Sources told the paper Starboard detailed two priorities to improve value. One of them is Dollar Tree selling Family Dollar, "even if it means selling it for significantly less than it paid for it."

[ [ALSO READ: Family Dollar shareholders approve merger with Dollar Tree] ]

The report also said "Family Dollar could garner interest from private-equity firms able to spend money renovating the stores."

Many locals Channel 9 spoke with said they would like to see Family Dollar stay here.

"For businesses like that to stay around, it’s a good thing for everybody,” resident Nick Burns said.

Family Dollar has a large footprint in Matthews. However, if the company ever left, town leaders said they are optimistic another major company would take its place.

Leaders said they’re prepared and have several local partners, such as the Charlotte Regional Business Alliance, they would use to recruit other big companies.

If that happens, many hope it’s a good fit.

"It depends, because a lot of companies coming in, there are not people trained for the jobs,” resident Lorraine Roberson said.

Dollar Tree said it’s focused on delivering long-term value to all shareholders.

The company also said it’s looking forward to working with Starboard but hasn’t said if or when any changes would take place.

[ [ALSO READ: Family Dollar to close NC headquarters, move to Dollar Tree facility in VA] ]

Dollar Tree is based in Virginia and has begun consolidating headquarters with Family Dollar, which could make it more difficult to break the two chains apart.

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