Dollar Tree has officially closed the chapter on its troubled $8.5 billion acquisition of Family Dollar, purchased by Brigade Capital Management and Macellum Capital Management. The deal was first announced in March 2025.
Dollar Tree confirmed the divestment in a press release, describing it as a key milestone in its “multi-year transformation journey.” It ends a troubled decade-long ownership and marks a renewed focus on Dollar Tree’s core business and growth strategy.
The sale marks a major pivot for Dollar Tree, which has struggled to effectively integrate and turn around the Family Dollar brand since its acquisition in 2015.
“This is a major milestone in our multi-year transformation journey to help us fully achieve our potential,” said Mike Creedon, Chief Executive Officer, Dollar Tree, Inc.
“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.”
Under the new ownership, Family Dollar will operate as a standalone private company. Brigade and Macellum have tapped industry veteran Duncan MacNaughton to serve as chairman, bringing deep retail experience and a prior executive background with the chain.
“I am excited to collaborate with the Family Dollar team and our incredibly capable and supportive new investors to drive the business forward in this next chapter of its evolution,” said MacNaughton.
“Family Dollar has a tremendous potential to grow and succeed as an independent company, and I am honored to be able to play a role in helping the company fully realize that opportunity.”
MacNaughton described the transition as a “chance to return to our roots, refocus on our unique strengths, and build a future tailored to the communities we proudly serve,” adding, “We’re energized by the opportunity to stand on our own and reimagine what value means for families across America. We are building a new Family Dollar, and we are better positioned to empower all our associates and shape a bold, future-focused company.”
Matt Perkal, Partner at Brigade, echoed this sentiment: “We look forward to investing in Family Dollar’s growth as its own enterprise. Meeting this moment with renewed focus and new management, we are confident Family Dollar will deliver the quality and value its customers throughout the U.S. want and expect.”
Jonathan Duskin, CEO of Macellum, added: “This transaction presented a unique opportunity to play a key role in reinvigorating an iconic business.
Throughout this process we have met an exceptional group of executives that are dedicated to the company and its customers. We look forward to executing the strategic plan we have developed together.”
With roughly 8,000 stores across the US, Family Dollar has long positioned itself to “serve the underserved” but has struggled with declining sales, store closures, and stiff competition. Under new ownership, the chain hopes to realign with its original mission and regain momentum.
“With a singular focus on our core business, we are doubling down on what we do best – delivering value, convenience, and discovery to our customers every day,” said Dollar Tree CEO Creedon. “Now more than ever before, we are poised to accelerate our growth, innovate faster, and unlock our full potential as a category leader in value retail.”
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