Dollar Tree announced on Wednesday that it is selling Family Dollar for $1 billion to a pair of private equity firms, a decade after acquiring the discount chain for more than $8 billion.
Although both Dollar Tree and Family Dollar cater to low-income shoppers, Family Dollar locations struggled to gain traction, prompting the parent company to announce last year plans to shutter approximately 1,000 locations. Family Dollar also faces fierce competition from Walmart and other large retailers, while a rat-infested warehouse spurred a slew of negative headlines.
