The future of Walgreens, an iconic Chicago drugstore, looks grim
Chicago Sun-Times••business
Key Points:
- Walgreens, a longstanding American pharmacy institution, was acquired in August by private equity firm Sycamore Partners through a leveraged buyout heavily financed with 70.9% debt, significantly above the industry average.
- The leveraged buyout structure burdens Walgreens with $13.33 billion in debt, potentially diverting resources away from innovation and workforce support, increasing financial vulnerability amid ongoing industry challenges.
- Sycamore Partners’ past acquisitions, including Staples and Nine West, involved extensive store closures, layoffs, and debt loading, raising concerns about similar outcomes for Walgreens under new leadership.
- Recent actions at Walgreens, such as cutting holiday pay for retail employees and firing most of its communications team ahead of office closures, suggest cost-cutting measures that may impact workers
