Five things to know:
1. The Journal reported in December that Walgreens was in talks to sell itself to Sycamore Partners and become private. The news outlet reported at the time that the deal could be wrapped as early as in 2025.
2. The Justice Department on Jan. 16 sued Walgreens and its subsidiaries alleging unlawful dispensation of millions of prescriptions in violation of the Controlled Substances Act. That lawsuit potentially complicated talks between Walgreens and the private equity firm, according to the report.
3. Michael Cherny, a Leerink Partners analyst, told clients in a note that the deal was “always a longshot,” and investor focus should return to the company’s fundamentals, according to the report.
4. In mid-October, the company said that it planned to shutter around 1,200 retail stores over three years, including around 500 in fiscal 2025. Walgreens saw an operating loss of $978 million in the fourth quarter of 2024, up 117.1% compared to the same period in 2023.
5. Walgreens and Sycamore Partners did not immediately respond to messages from Becker’s seeking comment.