Dollar Retail Chain to Close Multiple Locations in Illinois and Wisconsin

Just weeks after the long-anticipated split between Dollar Tree and Family Dollar was announced, the reality is sinking in across Illinois and Wisconsin. More store closures are now confirmed as part of Family Dollar’s massive downsizing. For many towns in the region, it’s a serious loss.

In my previous article, it was reported that Dollar Tree sold Family Dollar to private equity firms Brigade Capital Management and Macellum Capital for only $1 billion: a massive drop from the $9 billion acquisition in 2015. Now, with the deal set to close in June 2025, the next phase of that shift is unfolding: store by store, that's according to a list from Finance Buzz.

Illinois Family Dollar Closures:

• 3116 N. Sterling Ave., Peoria
• 820 NE Jefferson St., Peoria

Wisconsin Family Dollar Closures:

• 320 Lincoln Ave., Fennimore

These stores are part of a broader shutdown affecting over 1,900 Family Dollar locations across the U.S.. This includes a mix of regular stores and Dollar Tree/Family Dollar combo locations. Already, more than 700 stores were closed in 2024, and the remaining closures are expected to wrap up in the coming months. Some states, like Ohio (37) and Pennsylvania (8), saw even more closures of Family Dollar locations.

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Family Dollar has long served rural and low-income communities that don’t have easy access to larger grocery or big-box retailers. For many families, these stores provide more than just affordable pricing. They offer convenience, accessibility, and consistency. That’s now at risk.

As closures sweep across the Midwest, shoppers are left wondering where they’ll turn next. In rural communities, you can't just go across the street to another store. A closing Family Dollar (or similar convenience retailer) is essentially losing a major option in an already limited store ecosystem.

The future of Family Dollar depends on how its new owners, Brigade and Macellum, manage the brand. Some stores have seen light renovations in recent years, but with a now heavy emphasis on profitability, further trimming of the retail chain seems likely. For now, residents in Illinois and Wisconsin are bracing for more closures and fewer choices.