Head of Boots pharmacy chain to depart as owner Walgreens struggles

By Mike Murphy and Ciara Linnane

Sebastian James is leaving the company in November for another role in healthcare

The head of British pharmacy chain Boots is stepping down, the company said Monday, confirming media reports that come amid turmoil for parent company Walgreens Boots Alliance Inc.

Sebastian James has given Walgreens (WBA) notice that he will leave his post as Boots managing director in November to pursue a new role in the healthcare sector, the company said in a statement. The news comes after plans to sell Boots or publicly list its stock have stalled.

On Thursday, Walgreens stock plunged 25% to a 27-year-low, after the drugstore chain's quarterly profit fell short of expectations and its earnings outlook was lowered. The company plans to close thousands of underperforming stores as part of a plan to cut costs by $1 billion this year. Walgreens also said it had no plans to sell Boots-whose recent sales growth is one of the company's bright spots-but would continue to invest in it.

"We continue to face a difficult operating environment," Chief Executive Tim Wentworth said in a statement Thursday.

James was named managing director of Boots in 2018. Under his stewardship, the company has delivered 13 straight quarters of retail market share growth, said the Walgreens statement.

The company has started to search for a replacement managing director.

Shares of Walgreens Boots Alliance have sunk more than 53% year to date, compared with the S&P 500's SPX 14.5% gain.

-Mike Murphy -Ciara Linnane

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07-01-24 0703ET

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