Walgreens shared in an Aug. 7 Securities and Exchange Commission filing that it could sell off its entire stake in primary care clinic chain VillageMD.
"The company is currently evaluating a variety of options with respect to VillageMD in light of ongoing investments by the company in VillageMD’s businesses and VillageMD’s substantial ongoing and expected future cash requirement," the filing said. "These options could include a sale of all or part of the VillageMD businesses, possible restructuring options and other strategic opportunities."
The filings come after Walgreens saw a $5.8 billion loss in the second quarter of 2024 due to an investment devaluation in VillageMD.
Walgreens shared plans in late June to cut back on "a significant portion" of its underperforming retail stores across the next three years, while reducing its stake in VillageMD.
During an earnings call in October 2023, the company said it would exit around five markets and close 60 VillageMD sites in fiscal 2024 to cut at least $1 billion in costs.
"As we prioritize creating value and enhancing our liquidity position, [Walgreens] has entered into an agreement with VillageMD that provides additional runway to continue active engagement with VillageMD’s stakeholders and other third parties to evaluate a variety of options that will position it for sustainable growth," a spokesperson for Walgreens said in an Aug. 8 statement shared with Becker's. "[Walgreens] is fully supportive of VillageMD as we work collaboratively with VillageMD leadership toward a solution with no changes to day-to-day operations for doctors or practice operations."