Dollar Tree Completes Family Dollar Sale For $1B Amid

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ased Discount Chain’s Struggles

For just over $1 billion, Dollar Tree has sold its faltering Family Dollar company to two investment firms.

This Dollar Tree/Family Dollar business is located in Pearson, Georgia.

A Family Dollar store located in North Cape May, New Jersey.

Dayville, Connecticut, Dollar Tree shop.

Brigade Capital Management and Macellum Capital Management have successfully paid $1.007 billion in cash for Family Dollar, a company situated in Chesapeake, Virginia. The transaction was originally made public in March, and on Tuesday, July 8, Dollar Tree issued a press release announcing the sale’s completion.

After taxes and other changes, Dollar Tree anticipates receiving roughly $800 million, which includes $665 million paid at closing.

“The completion of this transaction marks a defining moment for Dollar Tree,” stated Mike Creedon, CEO. “We are doubling down on what we do best—providing value, convenience, and discovery to our consumers every day—by maintaining a laser-like focus on our core business. We are in a better position than ever to expand quickly, innovate more quickly, and realize our full potential as a value retail category leader.

Family Dollar was acquired by Dollar Tree in 2015 for almost $9 billion, but according to CNBC, the 66-year-old shop has had difficulty competing with big-box retailers like Walmart and online merchants like Amazon, Shein, and Temu. Online competition and, more recently, tariffs imposed by President Donald Trump put pressure on Family Dollar’s sales.

Dollar Tree started reviewing strategic options for Family Dollar in June 2024, and this ultimate sale completes that process. Since it no longer runs Family Dollar stores or hires Family Dollar employees, the company will cut expenses.

According to Dollar Tree, the company anticipates $375 million in tax savings from the Family Dollar sale’s losses.