Dollar Tree Agrees to Sell Family Dollar Chain

Dollar Tree has agreed to sell its Family Dollar chain to Brigade Capital Management and Macellum Capital Management for approximately $1 billion, after acquiring it for nearly $9 billion in 2015. The sale comes as Dollar Tree faced challenges integrating Family Dollar due to supply chain issues, poor store locations, and competition from major retailers like Walmart and Amazon. The transaction is expected to close in the second quarter of 2025, allowing Dollar Tree to refocus on its core business and opening new stores. Family Dollar's current president, Jason Nordin, will remain in charge, and the company will continue to operate independently with potential for future growth. Analysts believe the sale will benefit Dollar Tree by removing a consistent drag on financial performance and management resources. Meanwhile, Dollar Tree's stock rose 3% in premarket trading following the announcement, reflecting investor optimism about the company's strategic direction.