Dollar Tree, Inc. (NASDAQ:DLTR) chairman and chief executive officer Rick Dreiling has left the group with immediate effect, with the company saying it continues to examine a potential sale or spin-off of its Family Dollar chain.
Chief operating officer Mike Creedon was appointed as interim CEO and lead independent director Ned Kelly III has also been elected chairman.
The board of the US discount retailer, which in September cut its full-year guidance following a tough second quarter, said it is conducting a search process to identify a permanent CEO, with both internal and external candidates being considered.
With same-store net sales having "tracked well" through the third quarter, the company reiterated its outlook provided two months ago, with Q3 results due on December 4.
The board reiterated its commitment to completing a formal review of strategic alternatives for the Family Dollar business, including a potential sale, spin-off or other option, with "good progress" having been made on the process so far.
Dreiling said, "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."
He has overseen the Dollar Tree and Family Dollar chains since 2022, recently introducing a multi-price offering to shift away from the traditional $1 price point to offer a wider range of products at higher price levels.
Kelly said: "We support Rick’s focus on his health and wish him all the best. We are fortunate to have a talented leader in Mike Creedon to step in and help drive us forward."
For his part, Creedon, who joined the company in 2022 after nine years at Advance Auto Parts, said: "We are excited about our current trajectory and are focused on delivering a successful holiday season.
"We will continue accelerating growth at Dollar Tree, and we remain focused on identifying the best path forward for Family Dollar."