Few corporate dealmakers of the last few decades have been as pugnacious and single-minded as Stefano Pessina, executive chairman of Walgreens Boots Alliance (WBA).

As the owner of Boots, Britain's biggest high street chemist, the fortunes of New Yorklisted Walgreens are closely watched on this side of the Atlantic - and right now they are no oil painting.

Pessina's vision is unravelling, as WBA's businesses face challenges at every turn. Last week's earnings, which highlighted growing pressure on American consumers, included a big profit warning. The shares sank by more than 25 per cent on the day.

There was also more corporate schizophrenia about the future of Boots, with WBA chief executive Tim Wentworth indicating that a sale or stock market listing of the British is now not under active consideration.

I understand that WBA had been contemplating packaging Boots up with a number of the group's international assets to provide a growth story attractive to potential buyers.

Yet its latest process appears to have been little more than shambolic, and the decision to discontinue it has prompted the departure of Boots managing director Sebastian James, the incumbent since 2016.

As I revealed at the weekend, James is leaving the Nottingham-based retailer for a role at Veonet, a European chain of ophthalmology clinics owned by buyout firm PAI Partners and the Ontario Teachers Pension Plan.

Recruiting a successor should, in theory, be straightforward: running Boots remains one of the plum jobs in British retailing.

It would be understandable, though, if candidates were wary of accepting the role, given perennial flip-flopping over its future.

WBA's shares have slumped by nearly 60 per cent in the last year alone, and the company now has a market valuation of just $10.5bn.

That puts it within reach of potential financial bidders - bear in mind that less than five years ago, Boots' parent was approached about a record leveraged buyout deal that would have been worth more than $70bn in equity and debt.

Boots' performance in the last three years has actually outshone that of its parent, with 13 consecutive quarters of market share growth. For the sake of its future prosperity, a new prescription - under alternative ownership - is urgently needed.

(c) 2024 City A.M., source Newspaper