Analysts cite a number of reasons for Family Dollar’s difficulties, including low-income shoppers who are wrestling with inflation, competition with other retailers, and issues including poorly maintained stores.

Dollar Tree is selling off its Family Dollar stores for about $1 billion in a move the company says strengthens both companies.

Dollar Tree is selling its Family Dollar business at a discount. A decade after buying the 66-year-old business, Family Dollar, for $8.81 billion and absorbing the chain's locations, Dollar Tree is agreeing to the chain being acquired by the private equity firms Brigade Capital Management and Macellum Capital Management for just over $1 billion.