Dollar Tree Is Selling Family Dollar for $1 Billion
Dollar Tree is selling the family dollar brand for two private capital companies for just over $ 1 billion, the company announced on Wednesday after years of struggle with the functioning of the family dollar.
Private Equity Brigade Capital Management and Macellum Capital Management companies are purchasing the dollar of the family together, according to the declaration. In the announcement, the CEO of Dollar Tree, Michael Creedon, defined the sale of an “important milestone on our multi -year transformation journey”.
Dollar Tree purchased the Dollar family in 2015 for about $ 9 billion, hoping that the merger would help both stores reach more customers. But he struggled to effectively manage the family dollar brand. About a year ago, Dollar Tree said he would have closed almost 1,000 of the approximately 8,000 shops in a family.
In June, he announced Dollar Tree He was exploring the plans to sell the family dollarciting the inflation, theft and end of the benefits of the pandemic era of the federal government.
Investors seemed to respond favorably to the announcement, sending the Stock of Dollar Tree by about 4.6 percent at the beginning of Wednesday.
The family dollar shops are mainly in urban areas and mostly low -income buyers are served, which have been crushed more hard by inflation. The dollar tree has multiple shops in suburban areas and is aimed at consumers with relatively higher income.
In 2021, tree dollar has increased the price on most articles At $ 1.25, a decision that the company has declared would have been permanent after keeping prices at $ 1 for 35 years. Last year, the company launched a more malitier price system in some of its stores, with some of its prices up to $ 7.
Dollar Tree also recorded his latest quarterly earnings on Wednesday, detecting potential dramaings on his sales, including “rates or other measures that create barriers or restrictions on trade”. The company also warned in December that the rates could affect its prices and inventory.
