Walgreens is considering fully selling its stake in the unprofitable primary care chain VillageMD, reversing its previous commitment to expanding healthcare services. The company had invested over $6 billion in VillageMD, but persistent unprofitability and significant cash requirements prompted Walgreens to explore various strategic options, including a full divestiture. Despite efforts to restructure and close some VillageMD centers, the chain has not repaid its debts, leading to a forbearance agreement. This move aligns with Walgreens' broader strategy to streamline operations, which includes shedding other healthcare assets and closing underperforming stores amid a significant decline in stock value.
