Exterior of a Dollar Tree
  • Dollar Tree is looking at "strategic alternatives" for Family Dollar, which could include selling the chain, it said Wednesday.
  • Analysts have described Family Dollar as Dollar Tree's problem child and say it's been a drag on earnings.
  • Last year, Dollar Tree announced plans to close nearly 1,000 Family Dollar stores.

Dollar Tree is considering selling Family Dollar, it announced on Wednesday.

Dollar Tree said that it had started a formal review of "strategic alternatives" for Family Dollar, which it said could include "among others, a potential sale, spin off or other disposition of the business."