Dollar Tree is nearing a $1bn deal to sell its Family Dollar unit to a private equity consortium led by Brigade Capital Management and Macellum Capital Management.

The reported sale follows Dollar Tree’s strategic review of the business, which it originally acquired for $9bn in 2015.
The divestment comes amid a corporate restructuring effort as the company faces intensifying competition from retail giants like Walmart and online challengers including Amazon, Shein, and Temu.

Family Dollar has underperformed within Dollar Tree’s broader portfolio, prompting the retailer to evaluate alternatives since mid-2023.

Neither Dollar Tree nor the private equity buyers have issued official statements on the deal, which is expected to be finalised soon.