Family Dollar finalized its separation from Dollar Tree on July 7, emerging as a standalone, privately backed company headquartered in Chesapeake, Va. The new owners—Brigade Capital Management and Macellum Capital Management—paid roughly $1 billion to acquire the struggling discount-store chain.

The buyout caps a strategic handoff from Dollar Tree, which purchased Family Dollar for approximately $9 billion in 2015. The acquisition never delivered the expected synergies, prompting Dollar Tree to shutter roughly 1,000 underperforming locations and refocus on its core dollar-store model. Family Dollar logged approximately $13.7 billion in sales last year.

Private‑equity firms jockeyed for positions leading up to the deal. Reuters reported that Apollo Global Management and Sycamore Partners, along with Brigade, were active suitors in early 2025 . Ultimately, the consortium led by Brigade and Macellum secured the bid, emphasizing a strategic carve‑out from its previous parent.

Brigade, known for its credit‑focused private‑equity strategy and roughly $27 billion in assets, joins Macellum—a firm specializing in undervalued retail assets—as the new owners Dollar Tree CEO Mike Creedon, who orchestrated the divestiture, described the move as “a major milestone in our multi‑year transformation journey”

Supporting the investment thesis: discount‑retail outlets still draw stable traffic amid inflationary pressures, and Family Dollar’s urban‑center footprint offers differentiation from Dollar Tree’s suburban base. Analysts noted that investors, observing the branding pivot and USD exposure, rewarded Dollar Tree shares, which rose about 6% following the announcement .

The deal is expected to close later this quarter, pending standard regulatory approval. Post-closing, Duncan MacNaughton—former president and COO of Family Dollar—will serve as chairman and CEO, joined by existing President Jason Nordin.

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