Walgreens will never be the same from here on forward for the 4th of July, as selling to the SCAVENGERS is about to change everything...if it even survives. What an amazing thing these so called Leaders have done to Walgreens from going from a well respected company to now a joke if even that.
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Lol @controlled demolition. Pessina pi---d billions away waiting to liquidate his share of the company literally 90% drop since 10 years ago when he got involved.
This Pessina creep is 84 years old. How about go away and enjoy your life. You have more than enough money. Live your life......there is so much more at your age to do in life. How sad, and then to ruin a company like you have and still have greed like you do. HOW PATHETIC ARE YOU.
@116 Sincere thanks for the very thorough and well-written explanation. It seems anyone at Walgreens hoping for real "turnaround" is in for a rude awakening.
Look up Eddie Lampert and what he did with Sears.
Look up Pessina and what he has already done with his previous private equity deals before he bought Walgreens.
There is a lot of money to be made in controlled demolitions. The loopholes in private equity firms allow for the discharge of debt while running away with high pay-outs to Pessina.
The deals are structured in such a way as to limit all risk (downside) and ensure great potential benefit (upside). They money is often in the deal itself. The more deals, selling the companies back and forth -- swinging between private and public as Pessina has done with each company -- the more risk is lowered (losses escaped) and benefit is ensured (retain the hollowed out still profitable (or sellable) portion). Stack the hollowed out still profitable part (that is still sellable again) with private equity tax and debt loopholes.
This is his game. He knows it well. He has already done it. He is here to keep doing this type of deal making. The focus is his deals, their complex structures, and the ability to profit off of each deal. His focus is not on the actual business of the company.
Pessina even said he has no idea how to serve customers (he actually said this) but he does know how to make deals. He's not here to grow a business. He is here to make profit as it falls.
PE firms exploit regulatory gaps, such as lenient leveraged lending guidelines, to secure high debt levels. For example, they use holding company bonds or PIK (payment-in-kind) notes to circumvent debt-to-EBITDA limits (e.g., 6x EBITDA).
@zp Sycamore's Senior Advisor is on the Board. I am sure there are plenty of back room deals being made. And I assure you none of them involve taking care of the employees.
@wp I'm no financial genius but why would Pessina invest money in Walgreens only to oversee a "controlled demolition"? Walgreens, once a viable company is now a shell of its former self: tarnished reputation, declining front end sales, demoralized workforce to name a few. The Sycamore deal involves over 80% debt, limiting chances for a "turnaround". For Pessina to make money, the break up value of Walgreens would have be valued at far more than is currently realized, what is Pessina's motivation?
@wp Exactly. They cooked the books (no more operating statements at store level) and tried to sell. When that failed, Pessina bails knowing someone is bound to look. Brings in Brewer and Co. as a smoke screen and hides a few years. Unfortunately their own incompetence and stupidity has sunk the company so low that the only option now is selling to the salvage yard.
@vv+1jzb1tw4e The sale of Walgreens was in the works much earlier than 2024. KRR made a go at it previous to that. The sale of Walgreens was the plan the moment Boots bought Walgreens using Walgreens money to do so. The controlled demolition has been in the works for over ten years if not longer. Thank you.
The selling of Walgreens was the goal from the start of Tim being named CEO. In the proxy it was stated they were in talks with Sycamore in June 2024 and July 2024 they entered into a confidentiality agreement so Sycamore could make nonpublic acquisition proposals. When the story about the LBO appeared in Nov/Dec of 2024 the statement from Tim was "Pay no attention it's just a rumor. We're committed to our turnaround plan. But everything is on the table." Just plain BS form him as always. Remember this when they say anything during the July 15, 2025 Town Hall meeting.
@sa I'm not disagreeing with the no vote but with the amount of stock held by Pessina, institutional investors, etc. It's unlikely that the takeover is defeated by average employees voting no. Also, it's probably the most anyone will ever get for their shares. That said, it's striking to see how seemingly oblivious many employees are about what's likely to happen under Sycamore. They are not expecting the gutting of what's left of Walgreens. Many actually think being bought out by a private equity firm will result in an actual turnaround with most, if not all, getting to stay employed and have a bright future with Walgreens.
The upcoming vote should be a VOTE NO. Listening to these people and going along with what they have said to do, has been a total wrong way to go. SO if they say vote yes because they(the pathetic board and CEO) recommend it...I will and have voted no...opposite of what these failures say. People have listened to there KOOL AID for long enough.
@mh I would add Wasson to that list as well. He definitely helped put Walgreens on a trajectory for failure.
Thanks Roz. Thanks Stefano. Thanks Board......pathetic.
Don't tease me. This had better be a promise.