Green shoots at Family Dollar, where transformation plan reduces debt

Family Dollar storefront
Dollar Tree sold the Family Dollar business to private equity for $1 billion. (Source: Bigstock)

Variety store chain Family Dollar has delivered a growth in its sales through the 2025 fiscal year, while also reducing debts.

Founded in 1959, Family Dollar has grown to more than 8000 sites across the US. In July 2025, the then-struggling business was sold by parent company Dollar Tree to Brigade Capital Management and Macellum Capital Management for more than $1 billion.

With results fragmented due to the business’s sale, Family Dollar said it recorded year-end revenue of $13 billion, down from $15.3 billion in 2024.

Comparable sales, however, grew by 2.5 per cent. The company’s EBITDA of $495 million also exceeded expectations by 24 per cent.

“Over the past year, we’ve taken disciplined actions to strengthen the foundation of Family Dollar, and the progress we’re seeing reflects the focus and commitment of our teams across the organization,” said Duncan MacNaughton, chairman and CEO.

“We are focused on simplifying the business, improving execution in our stores, and ensuring we are positioned to serve our customers and communities for the long term.”

Family Dollar also said it reduced net debt by $300 million while achieving total liquidity of $1 billion. Across the company, a series of initiatives, both in–store and operational, are being implemented to support future progress.

“We are building a stronger, more focused Family Dollar,” MacNaughton added. 

“Our teams are executing with discipline, and we remain confident in our ability to deliver long-term value for our customers, associates, and communities.”

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