Dollar Tree is Selling Off All 7,600 Family Dollar Locations—What You Need to Know

Dollar Tree is Selling Off All 7,600 Family Dollar Locations—What You Need to Know - 1

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Just last week, Best Life reported that several discount retailers , including Five Below and Japanese dollar store Daiso, would be opening hundreds of new locations this year. But for another discount store, the outlook is quite different. In an announcement today, Dollar Tree confirmed that it would sell all 7,600 remaining Family Dollar locations that it owns.

RELATED: Big Lots Is Opening Remodeled Stores Next Month—Here’s Where .

Dollar Tree is selling Family Dollar for $1 billion.

Dollar Tree acquired Family Dollar for $8.5 billion in 2015, when the latter was struggling. However, the chain never quite caught up to the success of Dollar Tree’s namesake stores.

This time last year, Dollar Tree first floated plans to close roughly 970 Family Dollar stores. The news came on the heels of poor fourth-quarter financial results, which the company partially attributed to a series of over-the-counter drug recalls that affected Family Dollar. As The New York Times reported, this resulted in a $41.7 million food safety lawsuit that called the chain out for “distributing food, drugs, medical devices and cosmetics from a rat-infested warehouse.”

Then, in June, Dollar Tree shared that it was exploring a possible sale of Family Dollar, citing inflation as an additional concern (Family Dollar stores are typically located in low-income areas hit hardest by rising prices, whereas Dollar Trees tend to be in more middle-income neighborhoods.)

Now, Dollar Tree has officially announced that it will sell all 7,600 remaining Family Dollar locations to two private equity firms, Brigade Capital Management and Macellum Capital Management, for $1 billion. T he sale is expected to close in 90 days.

What does this mean for Dollar Tree and Family Dollar?

According to a press release , the new owners of Family Dollar plan to move the store forward.

“We look forward to continuing and enhancing Family Dollar as its own enterprise, which we are confident will drive greater success for the business and value for all of Family Dollar’s stakeholders, including employees, customers, and communities,” said Brigade partner Matt Perkal .

Jonathan Duskin , CEO and partner of Macellum, added that the two private equity firms have already developed a strategic plan that will help “in reinvigorating an iconic business.”

Meanwhile, Dollar Tree is optimistic about how the sale will affect its namesake stores in the future.

“This is a major milestone in our multi-year transformation journey to help us fully achieve our potential,” said Mike Creedon , Dollar Tree, Inc. CEO, in a statement press release . “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.”

And it looks like investors agree with Creedon’s rosy outlook, as stocks jumped four percent after the sale announcement, CNBC notes.

RELATED: The Absolute Best 8 Things to Buy at Dollar Tree, According to Retail Experts .

Dollar General is also closing locations.

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Family Dollar isn’t the only dollar store feeling the pinch. Earlier this month, Dollar General announced that it would close 141 underperforming stores this year.

“Many of our customers report that they only have enough money for basic essentials with some noting that they have had to sacrifice even on the necessities. We are not anticipating (an) improvement in the macro environment, particularly for our core customer,” Dollar General’s CEO Todd Vasos said at the time.

As Best Life shared, the company will shutter “96 Dollar General stores and 45 Popshelf stores. (The latter is more similar in inventory and shopping experience to Five Below than a traditional dollar store.) Additionally, six Popshelf locations will be converted to Dollar General stores.”

Big Lots Is Opening Remodeled Stores Next Month—Here’s Where

Big Lots Is Opening Remodeled Stores Next Month—Here's Where - 4

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If you’re confused about what’s going on with Big Lots , you’re definitely not alone. The discount retailer has been yo-yo-ing back and forth for several years about its closure plans. But here’s the latest: After being “saved” by liquidation firm Gordon Brothers Retail Partners in January, the plans suggested that between 500 and 600 of Big Lots’ remaining 870 locations would close. As for the remaining stores, they’re reportedly being remodeled, and these improved outposts will reopen in four waves, the first of which is set for April.

RELATED: Fake JOANN “Going Out of Business” Sales Are Spreading—Don’t Fall for Them .

It’s been a long road for Big Lots.

Big Lots first began closing stores in 2022 , but things really took a turn for the worst this past September when they filed for bankruptcy. There was a brief glimmer of hope when Nexus Capital entered the picture to buy the company, but that deal quickly fell through.

Then, just before the end of 2024, Gordon Brothers Retail Partners came in with another offer to buy Big Lots, and this one stuck. The deal stipulated that Gordon Brothers would sell off hundreds of store leases and transfer the remaining Big Lots locations and company assets to Variety Wholesalers, Inc.

Many Big Lots locations are still closing.

At the end of January , Gordon Brothers released its Phase I list of 496 Big Lots locations set to close, with the majority in Texas (72), New York (49), and Florida (44). “The new-to-market stores are primarily located in shopping centers across 47 states and range in size from 18,963 to 54,933 square feet,” Gordon Brothers wrote on their website at the time.

A week later, the list expanded by 150 additional locations in Phase 2 of the plan. As Best Life reported , we counted 544 total locations set to close, though other reports vary.

Stores on the chopping block have already commenced going-out-of-business sales. A banner on Big Lots’ website reads, “All Stores Closing! Final Days! Save Now 50%-80-% Off Entire Store.” A previous restructuring website has been taken down.

RELATED: Bed Bath & Beyond’s Big Comeback Is Approaching—Here’s What to Know .

Remaining Big Lots stores are being remodeled and reopened in four phases.

As for the lucky Big Lots stores that aren’t closing, Variety Wholesalers confirmed to Fast Company that they will reopen some of the roughly 200 stores that they acquired. This will happen in four phases between April and June.

Variety’s vice president of sales and marketing, Jeff King , told Fast Company that nine southern locations are currently being remodeled. They will have soft openings on April 10 with “new categories of merchandise.” The locations are:

  • Mount Sterling, Kentucky
  • Metairie, Louisiana
  • Tupelo, Mississippi
  • Pearl, Mississippi
  • Asheboro, North Carolina
  • Clarksville, Tennessee
  • Gallatin , Tennessee
  • Dickson, Tennessee
  • Roanoke, Virginia