Dollar Tree Wednesday announced it will sell its Family Dollar business for about $1 billion, about 10 years after it paid nine times that amount for the chain.

The Wall Street Journal is reporting the chain is being sold to Brigade Capital Management and Macellum Capital Management.

Family Dollar sells groceries, cleaning products and other items in urban areas, while Dollar Tree historically has sold items for $1, with some recent increases, aiming at suburban customers.

Dollar Tree outbid Dollar General to acquire Family Dollar in 2015, paying about $9 billion.

CNN is reporting that Family Dollar has around 8,000 US stores. The chain has struggled, last year announcing plans to close more than 900 stores.

Analysts say messy stores, high prices and over-expansion, coupled with competition from larger retailers have plagued the brand.

At the same time, inflation has eaten into profits and hit consumers. Early strategies to improve sales after the merger, such as selling beer, did not meet expectations.

The company said it is expected to close during the second quarter of 2025.