Mergers & Acquisitions

Chicago – Real estate investment trusts (REITs), which represent a sizable share of retail real estate activity, are worried about possible increases in interest rates. According to a report by consulting firm BDO USA LLP, 97% of REITs mention risks related to increases in interest rates and hedging.    This is up from 90% in 2014 and 88% in 2013, according to the 2015 BDO RiskFactor Report for REITs, which analyzes the most recent SEC 10-K filings for the 100 largest publicly traded REITs in the U.S.

The Fresh Market says its planned exit from California led to higher costs and lower profit in the first quarter, but analysts say the company may be in trouble.

Winston-Salem, N.C. - Krispy Kreme has signed development agreements to open 11 Krispy Kreme shops in Arkansas, Montana, Illinois and Kentucky in the next several years. An agreement with Dennis Porter,pPresident of DTL of the Emerald Coast, includes four additional shops to open in Arkansas.

Former Sears and Walgreens finance executive Atul Kavthekar is joining LivingSocial as CFO to help execute the e-commerce company’s ongoing re-invention strategy.

Washington, D.C. – Online marketplace LivingSocial appointed Atul Kavthekar as CFO. He will join the company in June, and will report to president and CEO Gautam Thakar.
 

Dollars Tree’s first quarter sales were less than expected, it is divesting more of the acquired Family Dollar stores than expected and closing the merger is taking longer than expected.

Fort Myers, Fla. – Chico’s FAS announced that CEO and president David F. Dyer intends to retire in spring 2016, at the end of the company’s fiscal year.

He will remain in his current role until a successor is appointed, and will remain on the board in the newly-created role of vice chairman until June 2016. The women’s specialty apparel retailer has retained executive search firm Herbert Mines Associates to assist in finding a new chief executive.

Chesapeake, Va. – Dollar Tree Inc. plans to sell about 330 Family Dollar stores to obtain Federal Trade Commission (FTC) approval of its pending $8.5 billion acquisition of Family Dollar Stores.  

The company has not identified the buyer, the sale amount or which stores will be closed. The 330 Family Dollar stores represent about $45.5 million in operating income, according to Dollar Tree. Dollar Tree expects the Family Dollar purchase to go through in July 2015.