Greenback Tree CEO Rick Dreiling steps down, citing well being considerations

KB Advisory founder and President Kristin Bentz analyzes the retail house as costs rise and employment movers decrease on ‘Making Cash.’

Greenback Tree CEO Rick Dreiling abruptly stepped down from his place on the helm of the beleaguered retail chain, citing well being considerations as the rationale for his resignation.

“With my health presenting some new challenges over the past two months, the time is right for me to step away and focus on myself and my family,” Dreiling stated in a press release.

Dreiling served because the low cost retailer’s chief govt since 2022. Analysts believed he performed a key function in reviving the enterprise. His final day on the job was Sunday. 

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Greenback Tree appointed its chief working officer, Michael Creedon Jr., as interim CEO whereas the board conducts a search course of for a everlasting substitute.

Clients store at a Greenback Tree retailer within the Austin neighborhood on August 02, 2022 in Chicago, Illinois.  ( (Picture by Scott Olson/Getty Photos) / Getty Photos)

Telsey Advisory Group analysts led by Joe Feldman stated in a Tuesday observe that the departure reduces their confidence within the firm and limits its “visibility on the strategy and execution ahead.” Telsey lowered its 12-month worth goal for the corporate. 

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“We believe Mr. Dreiling’s experience in the dollar store industry played a key role in understanding the business, designing the strategy for both banners, and taking bold actions to revive the business,” Feldman wrote. 

Feldman stated that whereas Creedon is “well-suited” for the interim function, “the lack of a permanent CEO could impact key business decisions heading into the holidays and 2025.” 

A girl outlets on the Greenback Tree retailer in Alhambra, California, on Dec. 10, 2021. (FREDERIC J. BROWN/AFP by way of Getty Photos / Getty Photos)

Greenback Tree, which lower its annual forecast in September, has already been within the midst of attempting to restructure its enterprise. 

In June, the corporate initiated a proper assessment of strategic options for the corporate’s Household Greenback enterprise section, together with exploring a possible sale or spinoff of the banner. 

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That got here months after the corporate introduced plans to shut almost 1,000 Household Greenback shops within the U.S. after struggling a major quarterly loss. 

The corporate is going through a number of points. Most notably, “consumer spending trends for the core lower income households remain challenging and competition is intense from the likes of Walmart and online retailers,” Feldman wrote.