Starboard Withdraws Board Challenge At Dollar Tree

Activist investor Starboard Value, which has pushed for changes at Dollar Tree, has decided to withdraw its slate of nominees for election to Dollar Tree’s board of directors at the 2019 annual meeting of shareholders.

Dollar Tree stated, “We welcome Starboard’s announcement and appreciate the constructive engagement and dialogue we continue to have with them and our other shareholders. Dollar Tree’s board and management team are committed to pursuing our announced plan to improve Family Dollar performance and to testing other ways to help deliver sustainable value-creation for shareholders while providing the best possible experience and value for our customers. Our company has strong momentum and we look forward to building on this and delivering value to all our stakeholders in the years ahead.”

Starboard, meanwhile, released its own statement: “We are pleased that Dollar Tree has announced its intention to perform a significant test of multiple pricepoints at Dollar Tree stores. In addition, management appears to have conviction that its proposed turnaround plan at Family Dollar is finally gaining traction as evidenced by greater than 10% comparable store sales at remodeled stores. We continue to enjoy constructive conversations with management and recognize their progress, as well as the significant increase in shareholder value based on the promises made since our involvement. As such, Starboard has decided to withdraw its nomination of director candidates for election at the 2019 annual meeting. We believe there is a substantial opportunity for further value creation, and we look forward to a continued dialogue and monitoring of the company’s progress on the implementation of a well-designed test of a multi-price point offering at Dollar Tree stores and continued improvement in the operating performance of Family Dollar.”