Dollar Tree Selling Family Dollars on “Multi-Year Change Journey”
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Dollar Tree sells it Family Dollar Business Discount chain stores are trying to turn back the increased losses under new leaders.
Dollar Tree has agreed to sell its family dollar business to private equity firm Brigade Capital Management and Macellum Capital Management for about $1 billion, the company announced in its fourth quarter revenue on Wednesday.
The deal is expected to end in 90 days as the family dollar business, which is headquartered in Chesapeake, Virginia.
Dollar Tree to close 1k Family Dollar Shop
The sale to a consortium of private equity investors is part of the other $9 billion paid by the company in 2015. Overall total brand price.
The sign was posted in front of the Family Dollar store in Fairfield, California on March 13, 2024. (Justin Sullivan/Getty Images/Getty Images)
Mike Creedon, CEO of Dollar Tree, who took the helm in December 2024, said his family Dollar Sale “can be fully dedicated to Dollar Tree’s long-term growth, profitability and capital gains.”
“This is a major milestone in our multi-year transformation journey that will help us achieve our full potential,” Creedon said, adding that he will continue to grow and optimize the Dollar Tree business.
The company plans to drive this growth through “an expanded assortment, opening key new stores across the United States, and strategic deals that advance growth strategies.”
In December, the company raised its full-year sales guidance after reporting profits and sales exceeding Wall Street’s expectations despite the loss of its finance chief. Earlier this month, the company announced that Stewart Glendinning will become the new CFO after previously focusing on enterprise-wide transformation initiatives, including reviews of strategic alternatives for family dollar businesses.
On August 2, 2022, in Chicago, you will pass the family dollar store in the Humboldt Park area. (Scott Olson/Getty Images/Getty Images)
The company is fighting back-to-back quarters of losses as demand declines. The stores have benefited as consumers faced rising costs, but have struggled to drive traffic due to the tough competition between fast fashion retailers like Walmart, Temu and Shein.
To address this, the company has launched slim down operations, particularly at family dollar stores. Costs from recall Of the various over-the-counter drugs and medical devices in almost 20 states in 2023.
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Last year, the company announced that it would close around 1,000 stores in the first half of 2024, including 600 stores with family dollars. The company said that the next 370 family dollar stores and $30 tree stores will be closed for years to come when the lease expires.
Dollar Tree stocks are down more than 40% per year.
JPMorgan Securities LLC and Davis Polk & Wardwell LLP advise Doll Tree, while Jefferies LLC is the leading financial advisor to Brigade and Macellum.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| DLTR | Dollar Tree Inc. | 70.45 | +3.31 |
+4.94% |
RBC Capital Markets also advises on the acquisition of family dollars. Paul, Weiss, Rifkind, Wharton & Garrison LLP provide lawyers for the transaction, funded by Wells Fargo, RBC Capital Markets, and Whitehawk Capital Partners.