Once popular discount retailer sold for pennies on the dollar
It was part of the Dollar Tree family.
Transcript:
Loren Torres: After a $9 billion dollar purchase and 10 years of struggling sales, Dollar Tree is selling its Family Dollar-arm. The discount brand will be sold to a pair of private equity firms for just $1 billion.
Of the sale, Dollar Tree said it “best unlocks value for Dollar Tree shareholders and positions Family Dollar for future success.”
Dollar Tree initially purchased Family Dollar to help the company compete with larger competitors.
Related: Dollar Tree issues stern warning about its pricing
However, the stores themselves were not kept in good condition and many of them cannibalized their own sales because the locations were opened too close to one another. On top of that, Family Dollar was hit with a $41.6 million fine in 2024 for violating product safety standards.
Family Dollar currently has around 8,000 stores throughout the U.S.
That’ll do it for your daily briefing. From New York City, I’m Loren Torres with TheStreet.
