After This Merger Happened – Will There Be More Closures in Minnesota?

When you merge with another business that is similar to the one you already have, isn't the idea to grow?  Like the who concept would be to make a merger that will be equally lucrative for both companies, right?  That is the idea, correct?

THAT DOES NOT SEEM TO BE THE SITUATION IN THIS CASE

In September, so not that long ago, Dick's Sporting Goods merged with Foot Locker.  It was a $2.4 Billion deal.  BILLION!  Well, things don't seem to be working out quite as they expected.

There used to be a Foot Locker store located here in the Crossroads Mall.  But that closed a bit ago.  There are a few other sneaker stores that have opened within the last few months that have taken the place of Foot Locker, but that one is no more.  Kind of a bummer.  I do remember being in High School, and we would always get our shoes for any sort of sport at Foot Locker.  It was located near Daytons, now Macy's.

WHY IS THERE AN ISSUE WITH FOOT LOCKER

Dick's Sporting Goods has mentioned that due to unproductive assets, they will have to make some hard decisions.

...initiated a review of unproductive assets, which includes cleaning up inventory, closing underperforming stores, and right-sizing assets that don't align with its strategy for the Foot Locker Business. The company said that these actions, along with additional merger and integration costs, are expected to result in future pre-tax charges of $500 million to $750 million.

SHOULD SOMEONE HAVE NOTICED THIS BEFORE THE MERGER

So - will more stores be closing around the area and in Minnesota?  We will have to wait and see.  It seems like in this situation maybe someone should have done some more homework.  Or - maybe this would have happened anyway if Dick's Sporting Goods hadn't aquired Food Locker.  It's sad.

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