The year-long closure of 695 stores by bargain chain, Dollar Tree, as reported by the company on November 23, 2025, has been part of what the company calls “a portfolio optimization review”. The company made the strategic choice to close underperforming stores and refocus its capital on high-performing locations in stronger markets.
In addition to the closings, the company has sold its Family Dollar business and affiliates to Brigade Capital Management, L.P., for approximately $1Billion in cash. The decision was made to divest the brand and narrow the company’s focus to the Dollar Tree core brand, giving management the opportunity to concentrate on new store formats and price points.
The sale of Family Dollar and the Dollar Tree store closings have resulted in massive layoffs across the country and shoppers in low-income urban neighborhoods struggling to find an affordable alternative to big-box chains and warehouses.
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