Source: The New York Times
Dollar Tree is selling the Family Dollar brand to two private capital firms for just over $1 billion, the company announced on Wednesday after years of struggling with Family Dollar’s operation.
The private equity firms Brigade Capital Management and Macellum Capital Management are buying Family Dollar together, according to the statement. In the announcement, Dollar Tree’s chief executive, Michael Creedon, called the sale a “major milestone in our multiyear transformation journey.”
Dollar Tree purchased Family Dollar in 2015 for about $9 billion, hoping the merger would help both stores reach more customers. But it struggled to effectively manage the Family Dollar brand. About a year ago, Dollar Tree said it would close nearly 1,000 of Family Dollar’s roughly 8,000 stores.
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