Dollar Tree struggled with its acquisition of the Family Dollar banner and, more recently, was negatively affected by cost headwinds. We worried about the pace of change and evolution of the model, and we spoke with company management to share our thoughts on the opportunities for the business as well as areas requiring attention.
In December 2021, the investment firm Mantle Ridge proposed a new slate of board members for Dollar Tree, including Rich Dreiling, a distinguished retail executive who was previously CEO of one of Dollar Tree’s competitors, Dollar General. Following this news, we wrote a letter to the board, believing that the Board was not adequately reviewing any proposals for change.
In an effort to share our views and better understand everyone’s position, we also subsequently engaged with the independent board committee and with Mantle Ridge. In March 2022, Dollar Tree reached a settlement with the investment firm, adding seven new directors, including Rich Dreiling as Executive Chairman. This was a change we fully supported.