Dollar Tree to Sell Struggling Family Dollar for $1 Billion (3)

Dollar Tree Inc. is offloading its Family Dollar chain for about $1 billion to Brigade Capital Management and Macellum Capital Management a decade after buying the business.

The deal, which is expected to close next quarter, marks a disappointing end to Dollar Tree’s bid to establish itself as a discount giant, with a price tag that’s a steep discount to the nearly $9 billion it paid for Family Dollar. Dollar Tree’s store count will roughly halve following the transaction.

The deal “closes the book on a sad and troubled chapter for Dollar Tree,” Neil Saunders, managing director at ...