Dollar Tree has announced the sale of its Family Dollar business to private equity firms Brigade Capital Management and Macellum Capital Management for approximately $1 billion. The sale, which is pending regulatory approval, is expected to close in the next quarter. Dollar Tree acquired Family Dollar in 2015 for $9 billion, but the venture has struggled due to competition and operational challenges.
Family Dollar, which has around 8,000 stores across the United States, has faced difficulties such as messy stores, high prices, and over-expansion. The chain has also been impacted by inflation and tariffs, which increased operating costs and affected its low-income customer base.
Dollar Tree CEO Michael Creedon stated that the sale will allow the company to focus on its core Dollar Tree brand and improve its long-term growth and profitability. Creedon, who took over as CEO in December 2024, emphasized that the company plans to expand its product assortment and open new stores across the country.
Despite the sale, Family Dollar will remain headquartered in Chesapeake, Virginia. The decision to sell comes after Family Dollar announced plans to close over 900 stores last year due to underperformance. The sale marks a significant shift for Dollar Tree as it aims to strengthen its position in the retail market.
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