Dollar Tree to Sell Family Dollar for $1 Billion, a Decade After Acquiring It for $8 Billion – One America News Network
OAN Staff James Meyers
9:27 AM – Wednesday, March 26, 2025
On Wednesday, Dollar Tree announced it would sell Family Dollar for $1 billion to two private equity firms, nearly a decade after acquiring the discount chain for over $8 billion.
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According to a statement from Dollar Tree, Brigade Capital Management and Macellum Capital Management will take over Family Dollar, which will maintain its headquarters in Chesapeake, Virginia.
Though both Dollar Tree and Family Dollar focus on low-income customers, Family Dollar has struggled with profitability, prompting the parent company to announce the closure of nearly 1,000 locations last year.
Furthermore, Family Dollar has faced stiff competition from larger retailers like Walmart. The chain has also garnered negative attention recently due to reports of rodent infestations in several warehouses.
Dollar Tree noted that many Family Dollar patrons are highly price-sensitive, and the chain has also been affected by rising shoplifting incidents that have detrimentally impacted its overall business.
“Dollar Tree has struggled for over a decade to make the business work,” stated Neil Saunders, an analyst at GlobalData, via email. “Its efforts have been hampered by supply chain issues, subpar store locations, a value proposition that isn’t compelling enough, and various operational challenges.”
He added, “Essentially, Dollar Tree bit off far more than it could chew.”
Meanwhile, Dollar Tree has been exploring strategic options for Family Dollar for several months, asserting that the sale will enable it to concentrate on its core business.
“This marks a significant milestone in our multi-year transformation journey aimed at realizing our full potential,” stated Dollar Tree CEO Mike Creedon.
Leading up to the sale, Dollar Tree had little room for missteps, as consumers reduced spending due to high inflation under the Biden administration, while the Trump administration seeks to stimulate the economy.
In premarket trading, Dollar Tree shares surged by $2.11, or 3.1%, reaching $69.25.
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