MEMPHIS, Tenn. — After permanently closing its previous 30-year-old warehouse in West Memphis in 2022 after a rat infestation was found inside, city leaders announced Wednesday, Oct. 11, 2023, that Family Dollar is heading back to the city with a new rebuilt distribution center.
The city said more than $100 million is being invested in the new 850,000-square-foot “fully modernized distribution center,” which is set to be in operation by fall of 2024 and “will serve as a model of excellence for all facilities in the Dollar Tree and Family Dollar network.” They said the investment is meant to make sure the facility meets all health and safety standards.
City leaders said the new center will create 300 jobs in West Memphis at the start, with further workforce expansion plans. (Learn more HERE.) They said the center will be able to serve up to 1,000 Family Dollar stores in the region.
“This is more than a reopening, it’s a transformation. Our West Memphis facility will have a full interior demolition and wall-to-wall, floor-to-ceiling rebuild,” said Mike Kindy, Executive Vice President and Chief Supply Chain Officer at Dollar Tree, Inc.
"I am thrilled to see Family Dollar transform and reopen its West Memphis facility,” said Mayor Marco McClendon. “It's exciting to see the company invest in its business and in the community. This rebuild demonstrates the commitment Family Dollar is making here, including more jobs, best-in-class safety, and a closer connection with all of us.”
On Feb. 18, 2022, the U.S. Food and Drug Administration (FDA) announced that more than 1,000 rats were found inside the original distribution facility. The chain then issued a voluntary recall that impacted over 400 stores in the South. According to Mayor McClendon at the time, about 230 employees at the facility lost their jobs.
Inspection reports showed the building had violations related to rat infestations going back to January 2021, more than a year before the infestation was announced and several stores closed.
The state then filed a lawsuit against Family Dollar and Dollar Tree accusing the companies of deceiving consumers, negligence, and engaging in a conspiracy that allowed the infestation to occur.
The Associated Press contributed to this story.