Is a ‘New Family Dollar’ on the Horizon?
Family Dollar has officially separated from Dollar Tree Inc. and is now a stand-alone private company with a new leadership structure.
Dollar Tree has completed the previously revealed sale of its Family Dollar business segment to Brigade Capital Management LP and Macellum Capital Management LLC for $1 billion. Net proceeds from the sale are estimated to total approximately $800 million, comprising $665 million paid at closing and approximately $135 million as a result of the monetization of cash prior to closing through a reduction of net working capital.
Prominent retail executive Duncan MacNaughton was appointed chairman and CEO of Family Dollar back in May. MacNaughton is no stranger to the Family Dollar business, having previously been its president and COO. With more than 30 years of experience guiding large-scale businesses through growth and transformation, his resume also includes stints at Kraft Food, H-E-B, Albertsons, Supervalu and particularly Walmart, where he was EVP, chief merchandising and marketing officer.
Jason Nordin will remain as president of Family Dollar.
Under the dedicated leadership team and new private equity owners, Brigade and Macellum, along with Arkhouse Management Co., Family Dollar is focused on building a stronger, more agile organization.
Family Dollar’s headquarters will remain in Chesapeake, Va., and it will continue its mission to “serve the underserved,” focused on the opportunity to build a “new Family Dollar.”
The discount retailer was founded in 1959 in Charlotte, N.C., with the goal of offering high-quality merchandise at affordable prices. Today, Family Dollar has more than 7,500 locations nationwide.
“This is a defining moment for Family Dollar — a chance to return to our roots, refocus on our unique strengths and build a future tailored to the communities we proudly serve," said MacNaughton. "We're energized by the opportunity to stand on our own and reimagine what value means for families across America.”
According to the company, the new ownership structure provides Family Dollar with the strategic support and financial resources needed to unlock its full potential. Brigade, Macellum and Arkhouse reportedly bring deep expertise in retail and a shared vision for Family Dollar’s growth.
“We look forward to investing in Family Dollar’s growth as its own enterprise,” said Matt Perkal, partner at New York-based Brigade. “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.”
“Family Dollar is entering a new chapter – one that provides an incredible opportunity to invest in what matters most: our people, our stores, our customers and our future. We are confident that with the strong new leadership team, combined with a forward-looking strategic plan, we have a truly unique opportunity to reinvigorate the iconic Family Dollar brand,” said Jonathan Duskin, CEO and partner at New York-based Macellum.
“We are building a new Family Dollar, and we are better positioned to empower all our associates and shape a bold, future-focused company,” MacNaughton added.
Meanwhile, as a stand-alone company in its own right, Dollar Tree plans to continue to grow through initiatives like its expanded assortment, new store growth and attracting new customers. Since the company’s founding nearly 40 years ago, Dollar Tree has grown to a 9,000-strong store footprint.
“The completion of this transaction marks a defining moment for Dollar Tree,” said Mike Creedon, CEO of Dollar Tree Inc. “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. 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.”
Dollar Tree expects the economic impact of tax benefits from losses on the Family Dollar sale to be approximately $375 million.
With a team of approximately 150,000 associates, Chesapeake, Va.-based Dollar Tree Inc. operates more than 9,000 stores and 18 distribution centers across 48 contiguous states and five Canadian provinces under the brands Dollar Tree and Dollar Tree Canada. The company is No. 32 on The PG 100, Progressive Grocer’s 2025 list of the top food and consumables retailers in North America.
