CHESAPEAKE, Va. — Family Dollar is entering a new chapter, with retail veteran Duncan MacNaughton taking the helm as chairman and CEO as part of a $1.007 billion sale of the chain to Brigade Capital Management and Macellum Capital Management.
The transaction, announced by Dollar Tree on Monday, is expected to close later in the second quarter pending regulatory approval. The deal calls for Family Dollar to be spun off as an independent company, while maintaining its headquarters in Chesapeake, Virginia. Dollar Tree states that the transaction marks the culmination of its strategic review of the Family Dollar segment, and asserts that the move will unlock value and reposition both brands for long-term success.
“This is a major milestone in our multi-year transformation journey to help us fully achieve our potential,” said Mike Creedon, CEO of Dollar Tree, Inc. “We will continue to grow and optimize our Dollar Tree business... and transactions that advance our growth strategy.”
Under the new structure, Jason Nordin, currently president of Family Dollar, will continue to lead day-to-day operations. He will be joined by MacNaughton, who brings decades of retail leadership experience — including a stint as president and chief operating officer of Family Dollar — to his new role as chairman and CEO.
“I am excited to collaborate with the Family Dollar team and our incredibly capable and supportive new investors to drive the business forward,” MacNaughton said. “Family Dollar has tremendous potential to grow and succeed as an independent company.”
Family Dollar's new owners say MacNaughton’s appointment underscores their commitment to revitalizing Family Dollar’s operations and expanding its relevance in the low-income communities that rely on the brand for affordable essentials.
Jonathan Duskin, CEO and Partner at Macellum, said the deal “presented a unique opportunity to play a key role in reinvigorating an iconic business,” and praised the “exceptional group of executives” already in place. “We look forward to executing the strategic plan we have developed together,” Duskin added.
Brigade Capital’s Matt Perkal echoed that sentiment, highlighting Family Dollar’s long-standing community presence since 1959. “The business is a pillar in communities across the United States. We are confident this new structure will drive greater success and value for all stakeholders.”
Dollar Tree acquired Family Dollar in 2015 in a deal worth nearly $9 billion, but the company has faced ongoing challenges integrating the brand. The company states that this divestiture will enable Dollar Tree to focus more directly on its core banner, where it plans to pursue significant store expansion and enhancements to its assortment.
