Once popular discount retailer sold for pennies on the dollar

Loren Torres brings you the biggest news of the day, including why Dollar Tree is offloading Family Dollar.

Transcript

00:00After a $9 billion purchase and 10 years of struggling sales, Dollar Tree is selling its

00:04Family Dollar arm. The discount brand will be sold to a pair of private equity firms

00:09for just $1 billion. Of the sale, Dollar Tree said it best unlocks value for Dollar Tree

00:13shareholders and positions Family Dollar for future success. Dollar Tree initially purchased

00:18the Family Dollar to help the company compete with larger competitors. However, the stores

00:22themselves were not kept in good condition and many of them cannibalized their own sales because

00:26the locations were open too close to one another. On top of that, Family Dollar was

00:30hit with a $41.6 million fine in 2024 for violating product safety standards. Family

00:36Dollar currently has around 8,000 stores throughout the U.S. That'll do it for your

00:40daily briefing. From New York City, I'm Lauren Torres with The Street.