Dollar Tree’s CEO and chairman, Rick Dreiling, has unexpectedly resigned due to health concerns. Dreiling, who assumed the executive chairman role at Dollar Tree in March 2022, announced his departure on Sunday, citing the need to focus on his health and family.

In a statement released Monday, Dreiling explained, “With my health presenting some new challenges over the past two months, the time is right for me to step away and prioritize myself and my family.”

Dollar Tree, which owns Family Dollar, has struggled this year, with shares dropping over 50%. The retailer revised its projections downward in September, attributing the outlook change to “immense pressures” faced by its core customers in low- to middle-income brackets. Despite dollar stores’ recent growth in response to these consumers’ needs, Dollar Tree has faced challenges from strategic missteps and competition with Walmart.

In Dreiling’s absence, COO Michael C. Creedon has been named interim CEO, and Edward J. Kelly will serve as chairman. The company is actively seeking a permanent replacement for Dreiling.

Dollar Tree also remains committed to exploring “strategic alternatives” for Family Dollar, leaving open the possibility of a sale or spin-off of the struggling chain. Dollar Tree acquired Family Dollar in 2015 for $8.5 billion, hoping to expand its market reach. However, financial and operational challenges have led to over 900 Family Dollar store closures by early 2024.