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The chief executive of Boots is leaving his role after six years, as attempts by owner Walgreens Boots Alliance to list or sell the UK pharmacy chain have stalled.
Sebastian James, who has been boss of the UK retailer since 2018, has accepted a post in the pharmaceutical industry and will leave Boots in November, according to a person familiar with the matter.
The move, which was first reported by Sky News, comes as Walgreens cut its profit outlook and indicated that an anticipated sale or listing of Boots was off the table.
Shares in the retail group plummeted as much as 25 per cent on Thursday after Walgreens slashed its outlook for annual earnings per share by 12 per cent and announced more store closures as a result of weaker consumer demand and lower reimbursements for pharmaceuticals.
Walgreens’ chief executive Tim Wentworth said on Thursday that the current pharmacy model was “not sustainable” and the unprofitable stores might have to close over the next three years.
“Our review of Boots UK showed that we have attractive options to unlock value in this business,” Wentworth said following the trading update. “While we believe there is significant interest in Boots at the right time, its growth, strategic strength and cash flow remain key contributors to the company.
“We are committed to continuing to invest in Boots UK and find innovative ways for this business to fulfil its potential,” he said.
Walgreens has previously abandoned plans to sell the retailer saying that while there had been “significant” interest, the offers made had failed to reflect its value.
In January, Wentworth triggered speculation that the chain could change hands when he said Walgreens was “evaluating all strategic options to drive sustainable long-term shareholder value” for the group.
The group operates more than 8,000 Walgreens and Duane Reade stores across the US, its largest market. It also owns about 2,000 Boots pharmacies in the UK.
