Table of Contents
- Closing stores can be part of the strategy of the new owner, sources suggest
The fears grow that the acquisition of High Street Chemist Boots through an American private equity company will lead to job losses and store closures.
The parent company, Walgreens Boots Alliance (WBA), which is on the US stock market, is taken over by Buyout Barons at Sycamore Partners in a deal with a value of almost £ 18.4 billion.
Boots was bought in 2007 by Italian billionaire Stefano Pessina, and since the merger with Walgreens in 2014 he is the largest shareholder in WBA. The wife of the 83-year-old, Ornella Barra, 71, is a senior executive.
The 176-year-old company has 51,000 employees in Great Britain with its 1,800 pharmacies and opticians.
All major job cuts in boots would be a hammer sector for retail trade.
Bricks and mortar shops, which have struggled as a result of online competition, COVID and rising overhead costs, are now confronted with a large increase in employment costs due to the relocation of Chancellor Rachel Reeves to increase the national insurance policies of employers.
'Bloated': Sources suggest that cutting stores can be part of the strategy of the new owners'
The Center for Retail Research predicts that there will be 17,350 store closures in the sector in 2025 and 202,000 job losses.
Sources near boots say that his network has been blown up, which means that it could be one of the first goals of a cost -saving strategy among its new owners. The company announced the closure of 300 stores in 2023.
Sycamore Partners, based in New York, describes itself as a store and consumer specialist.
The other investments are the hot topic of Fast-Fashion Brand and it used to be the owner of shoe company Kurt Geiger.
In an e -mail to Boots -employees who were seen by post on Sunday, Barra said she believed that Sycamore was “the right partner” and that it was “supportive and confident” in the company.
She said that Pessina would remain an important shareholder and urged employees to stay focused on your daily '.
She added that the company would continue its strategy to renew its beauty activities, extend pharmacies to broader healthcare services such as tests and jabs and improving online shopping and physical stores.
She has chosen the beloved NO7 brand for praise, and hopes that the popular serums will be safe among the new owners.
However, Sycamore's record can give the staff for thinking.
Under its property, American companies such as department store Chain Belk and fashion brand Nine West have applied for a bankruptcy.
Matt Parr from the private equity stakeholder project, an American non -profit organization that monitors the sector, said that the debt levels were 'enormous care', and added: 'Walgreens already has $ 9 billion (£ 7 billion) in debt.
“Private Equity uses the tendency to use large amounts of debts in these buyouts that lead to high bankruptcy rates.”
Observers say that Sycamore can try to drive or sell boots on the stock market.
DIY investing platforms
AJ Bell
AJ Bell
Easy Investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free Fund Trading and Investment Ideas
interactive investor
interactive investor
Flat-Fee Investing from £ 4.99 per month
Saxo
Saxo
Get £ 200 back to trading costs
Trade 212
Trade 212
Free actions and no account costs
Affiliate Links: If you switch off a product, this money can earn a committee. These deals are chosen by our editorial team, as we think they are worth emphasizing. This has no influence on our editorial independence.
Compare the best investment account for you
