Private equity firms Apollo Global Management and Sycamore Partners are among the bidders who are competing to acquire Family Dollar, a discount retail brand operated by Dollar Tree, according to people familiar with the matter.

Dollar Tree's management is exploring the potential sale or spin-off of Family Dollar segment. Read why DLTR stock represents an under-the-radar opportunity.

Private equity giants Apollo and Sycamore vie for Family Dollar purchase from Dollar Tree amid rising interest from Brigade.

Apollo Global Management, Sycamore Partners and Brigade Capital Management are reportedly interested in acquiring Family Dollar.

Walgreen Boots (NASDAQ:WBA) fell quickly fell 3% amid a report that Sycamore Partners is competing to buy the Family Dollar chain of stores from Dollar Tree (DLTR). The Reuters story comes as Sycamore Partners reportedly has been interested in a takeover of Walgreens Boots (NASDAQ:WBA).

Firefighters responded to a reported fire at the Family Dollar and Dollar Tree store on Water Street in Dundee around 5:40 p.m. Thursday. Crews from Dundee, Penn Yan, and Himrod arrived as the store was evacuated, though no visible smoke or flames were seen from outside.

Joann is slated to close around 500 locations in 2025, and other retail chains are shutting down stores for a variety of reasons.

Private equity firms Apollo Global Management (APO) and Sycamore Partners are among the bidders who are competing to acquire the discount

Private equity firms Apollo Global Management, Sycamore Partners, and Brigade Capital Management are reportedly vying to acquire Family Dollar from Dollar Tree. Discussions remain confidential, and no deal is imminent.

The news comes as Dollar Tree has been exploring the sale or spinoff of Family Dollar with the assistance of JPMorgan Chase (NYSE: JPM ). The interest from these private equity firms has provided a slight boost to Dollar Tree's stock, as the market reacts to the potential divestiture of Family Dollar.

A deal for Family Dollar, which could value the retailer at several billion dollars, is not imminent, the sources said, cautioning that Dollar Tree could choose not to sell the business.