Dollar Tree Selling Family Dollar

After nearly a decade of purchasing Family Dollar for around $8.5 billion, Dollar Tree announced it would be selling it for about $1 billion to private equity firms.

Brigade Capital Management and Macellum Capital Management are expected to acquire Family Dollar later in the second quarter.

Dollar Tree “bit off more than it could chew” when it took on Family Dollar in 2015. Dollar Tree had been struggling with Family Dollar’s operational difficulties, poor store locations, poor supply chain problems and the stores being in worse condition than expected.

The company believes this sale “unlocks value for Dollar Tree shareholders and positions Family Dollar for future success.”

By - FZ