Redemption companies are fighting for a family dollar, sources say – TradingView

Apollo Global Management and Sycamore Partners are among the auction bidders who compete to acquire Family Dollar, a discount brand operated by Dollar TREE DltrAccording to people familiar with the question.

The investment company Brigade Capital Management also expressed interest in buying a family dollar, the sources said, demanding anonymity as the discussions were confidential.

The family dollar deal, which can estimate the retailer of several billion dollars, is not impending, the sources said, warning that the dollar tree could choose not to sell the business. A different suitor for the family dollar may also appear, the sources added.

Dollar Tree did not immediately reply to a comment request. Apollo, Brigade and Sikamam declined to comment.

Chesapeake, a Virginia dollar -based tree, works with investment bankers at JPMorgan Chase to study the options, including a potential sale or spinof, for a June family dollar last year. The move marks a turn for Dollar Tree, which acquired the Family Dollar in 2015 for about $ 9 billion after exceeding its largest rival General Dollar DgS

After ingestion, Family Dollar struggles with his results and his growth has stopped, as the discount merchant is unable to attract new customers. Its performance lags lagging more retailers as Walmart Wmt and goal TgtAs users reduce discretional costs due to high inflation.

As of November 2, Tree Dollar operates 16 590 stores in 48 states and five provinces in Canada under the brands of Dollar Tree, Family Dollar and Dollar Tree Canada. The family dollar generates approximately $ 13.7 billion net revenue over the last 12 months, according to Reuters.

Sycamore, who has raised about $ 10 billion in total commitments, is an experienced retail investor who owns retailers such as Staples, Loft, Ann Taylor, Talbots and Belk. In recent months, Sycamore has also been trying to remove the swallow of the pharmacy circuit Walgreens Boots Alliance WbaS

Apollo Global Management, which had about $ 70 billion assets under its management strategy as of December 31, acquired and invests in retailers, including Michaels and Petsmart.

Brigade Capital manages about $ 27 billion in assets and is known mainly as a credit investor. Last year, the brigade partnered with the investment company Arkhouse Management in its unsuccessful attempt to acquire a Macy’s Universal Store MS