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Walgreens explores options for VillageMD business

(Reuters) -Walgreens Boots Alliance said on Wednesday it was exploring options for VillageMD, including a *****, 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 ***** 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)



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#Walgreens #explores #options #VillageMD #business

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