Dollar Tree CEO Rick Dreiling abruptly steps down

New York (CNN) — Embattled discount chain Dollar Tree announced its CEO and chairman, Rick Dreiling, had stepped down on Sunday.

Dreiling, who had just joined Dollar Tree as executive chairman in March 2022, said he is leaving for personal reasons.

“With my health presenting some new challenges over the past two months, the time is right for me to step away and focus on myself and my family,” Dreiling said in a press release Monday.

Shares of Dollar Tree, which also owns Family Dollar, have plunged more than 50% this year. In September, the company cut its outlook for the rest of the year, attributing it to “immense pressures” on its low- and middle-income customer base. While dollar stores were once rapidly expanding to meet the needs of these Americans, a series of strategic mistakes and competition from Walmart has dogged down its business.

Dollar Tree, which also owns Family Dollar, appointed COO Michael C. Creedon as interim CEO and Edward J. Kelly as chairman. It’s currently searching for a permanent CEO.

Dollar Tree also said it is still committed to a review of “strategic alternatives” for Family Dollar. That means the company could sell or spin off the chain, which has also long been struggling.

Dollar Tree bought its rival in 2015 for $8.5 billion, believing the acquisition of Family Dollar would help it compete against larger companies. But by early 2024, more than 900 Family Dollar locations had closed.

CNN’s Nathaniel Meyersohn contributed to this report.

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