Family Dollar may have buyers, but Dollar Tree still needs to pull the triggerFamily Dollar may have buyers, but Dollar Tree still needs to pull the trigger

Private equity firms are lining up to buy Family Dollar, according to reports. 

Apollo Global Management, Sycamore Partners, and Brigade Capital Management have all shown interest, and others may join them, according to reporting from Reuters. The deal could involve several billion dollars, according to Reuters’ sources, but Dollar Tree may decide against any acquisition. 

Dollar Tree has not responded to a request for comment.

The Chesapeake, Va.-based discount retailer has been evaluating what to do with Family Dollar for months. Last year, Dollar Tree initiated a formal review of strategic alternatives for the brand, which has been struggling financially. This review could include a potential sale, spinoff, or other business disposition options. Dollar Tree has retained J.P. Morgan Securities as its financial advisor and Davis Polk & Wardwell LLP as its legal advisor to assist with the review.

There are more than 7,600 Family Dollar stores in the U.S., according to ScrapeHero data. 

No decision timetable has been set for Family Dollar, but Dollar Tree CEO Michael Creedon recently said the retailer is close to making one.

Family Dollar is coming off solid third-quarter earnings. The chain’s same-store net sales improved by 1.9%, with a 1.8% boost in traffic. The company is currently undergoing a renovation and store conversion program. Since 2022, over 1,500 projects have been completed. The new formats feature customized product assortments, additional coolers, and expanded seasonal offerings to meet the needs of a diverse customer base.

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