Rumors about possible sale of Walgreens spark concerns about store, pharmacy closures
CHICAGO (CBS) -- Deerfield-based Walgreens is pushing back on reports that it might sell to a private equity firm.
The iconic drugstore chain has been struggling financially—and a sale could lead to even more stores closing.
Experts said Tuesday night that the industry is facing hard times because of factors such as slowing sales and diminishing reimbursements—leading to store closures.
The experts worry that a sale of Walgreens—particularly to a private equity firm—would only accelerate that trend. This, of course, would mean not just a loss of the drugstores themselves, but also of pharmacies for people to pick up prescription drugs.
"The focus isn't the neighborhood. it's not the community," said Christopher Crank, executive vice president of the Illinois Council of Health System Pharmacists, "and so what we could see is the number of pharmacies. Whatever the rate currently is, we could see the rate of those closures increase."
Crank said there are concerns a sale of Walgreens to private equity firm Sycamore Partners—as reported by the Wall Street Journal—could shift focus of the pharmacy giant. The result, he said, could be resulting in fewer stores, shorter hours, and fewer options for customers.
In a statement, Walgreens said, "We don't comment on rumors or speculation about our business."
But plenty of people are commenting on what the consequences would be if such rumors and speculation played out to be true.
"My first reaction is that this situation is getting more dire," said Cornel Darden, chairman, Greater Chicagoland Black Chamber of Commerce.
Some community organizers said they have watched pharmacies close—creating pharmacy deserts around Chicago.
In October, Walgreens announced it was closing approximately 1,200 locations nationwide after announcing 300 store closures in June.
When CBS News Chicago talked to customers about the closures, at least one had a tone of resignation.
"I mean, what can we do? All the big companies do it. We're small fries. There is nothing we can do. They're going to do what they want to do," said David Baker. "They run the world. There's nothing we can do."
This is very early speculation on a potential deal. Nothing set in stone yet, but there are already some changes. Walgreens is currently publicly traded, and the reports about the possible sale sent Walgreens stock surging nearly 20% higher on Tuesday.
