Walgreens explores options for VillageMD business
Tweet
Share
E-mail
FILE PHOTO: Pigeons are seen resting on signage for Walgreens, owned by the Walgreens Boots Alliance, Inc., in Manhattan, New York City, U.S., November 26, 2021. REUTERS/Andrew Kelly/File Photo
(Reuters) -Walgreens Boots Alliance said on Wednesday it was exploring options for VillageMD, including a sale, citing the primary-care provider's substantial cash needs.
VillageMD, a core part of Walgreens' push to expand beyond its legacy pharmacy operations, has planned to close a substantial number of poorly performing clinics to cut costs.
"These options could include a sale of all or part of the VillageMD businesses, possible restructuring options and other strategic opportunities," Walgreens said in a filing on Wednesday.
The company in June cut its fiscal 2024 profit forecast and said it would close underperforming U.S. stores as weak consumer spending hurts retail operations.
On Wednesday, Walgreens said it entered into a forbearance agreement with VillageMD after the business defaulted on a $2.25 billion secured loan facility provided by Walgreens.
The drugstore operator's shares were down about 1% in extended trade.
(Reporting by Christy Santhosh; Editing by Mohammed Safi Shamsi)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Israeli strike kills parents and two children in Gaza, medics say
- Hong Kong court convicts Wall Street Journal publisher for blocking ex-reporter from union role
- AI boom poses new financial stability risks, BIS head says
Create E-mail Alert Related Categories
ReutersSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
