FOR IMMEDIATE RELEASE: March 7, 2025

CONTACT: Jarice Thompson, jarice@ourfinancialsecurity.org

Sycamore Takeover of Walgreens Sets Stage for Job Losses and Store Closures 

Washington, D.C–  The Sycamore Partners $10 billion purchase of drugstore chain Walgreens risks disaster for workers and customers, given this private equity firm’s track record. The private equity  takeover of retailers has enriched the Wall Street by extracting dividends, stripping out real estate, and charging astronomical fees that has driven many chains into bankruptcy, shuttered thousands of locations, cost hundreds of thousands of jobs, and left consumers worse off than before.

“Sycamore’s retail takeovers have not turned out well for retail chains, workers, or shoppers,” said Aliya Sabharwal, senior campaign manager for private equity at Americans for Financial Reform. “Private equity is well known for looting retailers —  hollowing out their value and driving them to bankruptcy.”  “The private equity playbook is good for lining Wall Street executives’ pockets but is bad for workers and the industries they pillage.”

Previous Sycamore takeovers have harmed both retail workers and consumers with significant job losses, store closures, several bankruptcies (such as Aeropostale), and extensive workplace violations along with higher costs and lower quality of products.

After Sycamore bought Staples for $7 billion, it paid itself a $1 billion dividend, closed over 100 stores, and laid off more than 7,000 workers. This acquisition adds to Sycamore Partners existing broad portfolio of retail chains including Ann Taylor, Belk, Hot Topic, Lane Bryant, Loft, Staples, Talbots, and The Limited. 

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