Boots sale is halted due to a fall in shares of the US parent company

Boots, the struggling US-owned chemist chain, has for the second consecutive time abandoned plans to sell its multi-billion pound assets. This puts the high street chemist in danger of further cuts on investments.

Walgreens has abandoned its plans to cash out Boots after it issued a profit warning that was damaging on Wednesday.

After the trading update announced that a number of stores would be closed, its share price fell to its lowest point since 1997.

Boots is an isolated bright spot in the $10bn group. Chief executive Tim Wentworth has said that he will retain ownership as he tries to overhaul the company.

“Our review of Boots UK revealed that we have attractive alternatives to unlock value within this business,” he said.

Boots’ growth, cashflow, and strategic strength remain the key factors for the company.

We are committed to investing in Boots UK, and finding innovative ways to help this business reach its full potential.

This decision is likely to cause concern that Boots’ stores may be closed or not receive upgrades. Walgreens, which has shut down 650 Boots shops in the UK, has been criticized by staff and customers alike for its lack of investment.

This will fuel speculation about the future of Seb James as chief executive. He has been in charge since 2018, and had been promoting the retailer’s chances of being listed in London.

Walgreens bosses have said that Boots stores are still “key contributors” for the company. Walgreens’ latest update revealed that overall sales at Boots increased by 1.6pc compared to the third quarter. Digital purchases also increased 13.8pc y-o-y.

Walgreens’ profit forecast was cut by 25%, the biggest drop in a single day since 1980.

The company announced plans to close many underperforming stores across the US in an effort to reduce costs.

The group announced last year that it would find cost savings up to $1bn by closing 650 Boots shops in the UK. The group said that 484 stores had already closed as of February, leaving 1,900.

Walgreens reported sales of $36.4bn in the last three months. This represents a 2.5pc increase.

This was despite a 4pc drop in retail sales amid a “challenging US Retail Environment”.

Mr Wentworth stated: “I am confident that Walgreens will be at the forefront of the future healthcare industry, with retail and pharmacy at its core.”

We also recognize where we are now and what needs to be done to achieve our long-term goals. The urgency is only increased by the severity and length of the challenges we face in our operating environment.

Walgreens bought the 175 year-old company in 2014, and tried to sell it before in 2022.

The sale plans were revived earlier this year. Mr Wentworth claimed in January that, “everything was on the table” with regards to the future of Boots.

An investment banker in the City said that private equity firms had been looking at Boots over the last few months. This was especially true as the prospect of London’s listing has faded. They described Boots as a less attractive proposition due to its large real estate portfolio.

The banker asked, “What are you going to do with that much space?” He stressed that the large number of shops would require a significant amount of investment.

A City banker added: “All buyers asked what had changed since the last time. The short answer to that question is not much.