Popular discount retailer announces closure amid financial struggles

Economic uncertainty and weakening consumer spending have forced many retailers, even long-established chains, to close stores in efforts to restore profitability as they navigate increasingly volatile financial times.

While discount retailers have become the preferred shopping spaces for value-focused consumers, one well-known brand has struggled to achieve the same success.

Family Dollar's parent company, Dollar Tree, revealed it would begin a round of store closures in 2024, shuttering 600 Family Dollar locations and another 370 as leases expire, bringing the total closures to nearly 1,000 units.

"We believe rationalizing these unprofitable locations will help to unlock meaningful value at the enterprise level," said Dollar Tree CEO Rick Dreiling in an earnings call.

At the time, Family Dollar's same-store sales had fallen 1.2% in the fourth quarter of fiscal 2023.

In July, Dollar Tree (DLTR) sold Family Dollar to Brigade Capital Management, LP, and Macellum Capital Management, LLC for around $1 billion after buying it for $9 billion in 2015. The private equity acquisition aimed to help the company refocus on its core business, open new stores, and advance its long-term growth strategy.

Now, the new owners appear to be reviewing Family Dollar's remaining 7446 locations nationwide, potentially assessing underperforming stores for future closures once leases expire.

Family Dollar closing its Old Orchard Beach store

One of the latest casualties resulting from these significant changes is the Family Dollar in Old Orchard Beach, Maine. The store, located at 8 Heath Street, is set to close permanently on November 15, according to WCYY. Its closure will bring Family Dollar's store count in Maine down to 52.

As with most shutdowns, the Old Orchard Beach Family Dollar is holding a clearance sale to liquidate inventory.

Related: Walmart announces unexpected store closure

According to a customer's Facebook post, the location is doing a series of markdowns, which other users also confirmed: 30% off everything through October 27, followed by 50% off the next week, and 80-90% off in the final weeks before closing.

Another Facebook user noted the store's proximity to a Dollar General (DG) across the street, commenting, "It was only a matter of time. Honestly surprised they kept both open for this long but Dollar General was built on its own and opened in 2019 whereas this was in a leased building so it’s not much of a surprise."

Store closures become an alarming industry trend

Family Dollar isn't alone in its struggles; the closures come amid a broader wave of store shutdowns across the retail sector.

While the National Retail Federation projects overall retail sales to grow between 2.7% and 3.7% in 2025 over the year prior, this still represents a slowdown compared to 3.6% in 2024.

According to CoreSight Research, announced store closures in 2025 are up 67% compared to last year. 

Legacy retailers, such as Macy’s (M), JCPenney, and Kohl’s (KSS), have all faced mass closures, while once-iconic chains such as Party City, Joann, and Forever 21 have filed for Chapter 11 bankruptcy after a long fight to survive.

As of July 4, nearly 6,000 retail closures have been reported nationwide, outpacing just over 4,000 new openings and sharply exceeding the 3,496 closures recorded during the same period in 2024.

"The implications of these closures go far beyond the retail floor," said President and Chief Lending Officer at Approved Funding Shmuel Shayowitz. "Thousands of workers are losing their jobs, many of them in communities where retail employment has historically been one of the biggest anchors. Vacant storefronts are becoming an increasingly common sight, and declining commercial property values are the norm.

"For consumers, the fallout means fewer choices, diminished access to in-person shopping, and, in some cases, higher prices due to reduced competition," he added.

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