VillageMD CEO steps down
CEO Tim Barry has resigned, and the company's board has appointed VillageMD COO Jim Murray to serve as interim CEO.
Photo: Courtesy of Walgreens
VillageMD CEO Tim Barry has stepped down and Chief Operating Officer Jim Murray has been appointed to serve as interim CEO.
The move is "effective immediately," according to VillageMD spokesperson Molly Lynch, according to the Chicago Tribune.
No reason was given for Barry's departure.
Walgreens released this statement: "We look forward to continuing to partner with Jim Murray as he assumes day-to-day leadership responsibilities. In addition to his decades of recognized experience in healthcare, since joining VillageMD, Jim has been integral in helping lead the company's turnaround as VillageMD makes meaningful progress and positions itself for profitable growth. Walgreens Boots Alliance is committed to keeping VillageMD, Summit Health and CityMD doctors, team members, and patients top of mind and remains focused on building trusted relationships that create healthier futures for team members, customers, patients and communities."
WHY THIS MATTERS
The move comes as parent company Walgreens Boots Alliance suffers from "significant profitability challenges" Seeking Alpha said last month.
During its Q4 earnings call in October, Walgreens reported an $8.6 billion net loss in FY24, with plans to close 1,200 stores by 2027.
"The investments in VillageMD aren't paying off, with the healthcare unit losing $134 million last year," the Seeking Alpha report said.
Walgreens CEO Tim Wentworth said of VillageMD during the Q4 earnings call, "... We've declared it's not a crucial part of our future."
THE LARGER TREND
Walgreens expects to close approximately 1,200 underperforming stores over the next three years, CEO Tim Wenworth said during the Q4 call.
An estimated 500 stores are targeted to close in fiscal 2025, Wentworth said.
Email the writer: SMorse@himss.org
