[Update as of July 8, 2025] Family Dollar has officially separated from former parent company Dollar Tree and begun its tenure as a standalone company, under the ownership of private equity companies Brigade Capital Management, Macellum Capital Management and Arkhouse Management. The retailer will remain headquartered in Chesapeake, Va. and will be led by Chairman and CEO Duncan MacNaughton.
“This is a defining moment for Family Dollar — a chance to return to our roots, refocus on our unique strengths and build a future tailored to the communities we proudly serve,” said MacNaughton in a statement. “We are building a new Family Dollar, and we are better positioned to empower all our associates and shape a bold, future-focused company.”
Original story from March 26, 2025 begins –
Dollar Tree Sells Family Dollar Division to VCs for Over $1 Billion
After several months spent deciding the fate of its struggling Family Dollar division, parent company Dollar Tree has sold the banner to Brigade Capital Management and Macellum Capital Management for $1.007 billion. The VCs’ purchase of the 8,000+-store discount retailer is expected to close later in Q2, subject to customary closing conditions.
Advertisement
Dollar Tree began considering the fate of Family Dollar in June 2024, initiating a strategic review to consider options including a sale or spinoff of the business. This move followed the March 2024 announcement that Dollar Tree would close approximately 1,000 Family Dollar locations during the fiscal year that began on Feb. 4, 2024.
“This is a major milestone in our multi-year transformation journey to help us fully achieve our potential,” said Mike Creedon, CEO of Dollar Tree in a statement. “We will continue to grow and optimize our Dollar Tree business to maximize value for Dollar Tree associates, customers and shareholders with an enhanced focus on compelling initiatives, including our expanded assortment, significant planned new store openings across the United States and transactions that advance our growth strategy.”
The sale announcement came as Dollar Tree reported financial results for its fiscal 2024, which ended Feb. 1, 2025. As a whole, the retailer increased net sales 4.7%, climbing from $16.7 billion to $17.6 billion. Comparable sales at the 8,400 Dollar Tree stores increased 1.8%, driven by a 1.6% jump in traffic and a 0.1% increase in average ticket value. Family Dollar results were accounted for as discontinued operations.
VCs Express Confidence in Family Dollar as Private Company
“Since 1959, Family Dollar has served its customers by offering convenient, high-quality products at a great value, and the business is a pillar in communities across the United States,” said Matt Perkal, Partner at Brigade in a statement. “We look forward to continuing and enhancing Family Dollar as its own enterprise, which we are confident will drive greater success for the business and value for all of Family Dollar’s stakeholders.”
Family Dollar will remain headquartered in Chesapeake, Va. In November 2024, Jason Nordin was named President of Family Dollar stores and he played a key leadership role in the review that led to the sale.
