A dollar tree that sells a family dollar on a “long -term transformation” journey “

Dollar Tree sells its Family Dollar Business As the discount shop tries to turn its losses within the new leader.

The dollar tree agreed to sell its family dollar of the Brimade Capital Management and Macellum Capital Management to private joint -stock companies about $ 1 billion, the company reported in the fourth quarter on Wednesday.

The transaction is expected to close in 90 days, and the family dollar remains the headquarters in the Chepik, Virginia.

Dollar Tree Close about 1 thousand family stores

Selling a consortium of private capital investors is part of approximately $ 9 billion that the company paid for it in 2015 when it Total dollar for brand.

The sign is located in front of the dollar family store on March 13, 2024 in Ferfield, California. (Justin Sullivan / Getti Image / Getti Image)

Dollar Tree CEO Mike Criton, who took the helm in December 2024, said the sale of the family dollar would allow the company “to devote itself to long -term growth, profitability and return to the capital.”

“This is the main milestone in our many years of transformation to help us fully reach our potential,” Cridon said, adding that the company will continue to grow and optimize the dollar business.

The company plans to attract this growth through “an expanded range, significant new store discoveries across the United States and strategic operations that promote our growth strategy,” he added.

In December, the company raised its full sales recommendations after the profit and sales notes that exceeded Wall Street’s expectations, despite the loss of finance head. Earlier this month, the company announced that Stewart Glening will become a new financial director, after having previously stalled on the enterprise transformation initiatives, including considering strategic alternatives to the family dollar business.

On August 2, 2022, a cyclist passes in Chicago by a family store in Humbold Park. (Scott Olsan / Getti Image / Getty Images)

The company faces fourth loss when the demand has faded. While the shops benefited when consumers faced the cost growth, they tried to attract traffic out of the fierce competition between Walmart, Target and fast retailers like Temu and Shein.

To combat this, the company began to reduce operations, especially with family shops that struggled with softer sales in the same store due costs from recall Different medicines and medical devices in almost two dozen state in 2023.

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Last year, the company announced that nearly 1000 shops, including $ 600, in the first half of 2024. The company also stated that an additional 370 dollars and $ 30 shops will close over the next few years when renting.

Today, dollar trees are reduced by more than 40%.

LLC JPMorgan Securities and LLP Davis Polk & Wardwell advises Dollar Tree, and LLC Jufferies is the leading financial advisor on the Brigade and Macellum.

The RBC Capital Markets also advises on the purchase of a family dollar. LLP Paul, Weiss, Rifkind, Wharton & Garrison provides a legal lawyer for transactions, and Wells Fargo, RBC Capital Markets and Whitehawk Capital Partners provide financing.