The CEO of Boots, Britain’s largest pharmacy chain, is stepping down after the owner’s plans for a £5 billion sale or stock market listing stalled.
Sky News has learned that Sebastian James, who has led Boots since 2018, will leave the company in November.
City sources said this weekend that he has accepted a new position in the healthcare sector.
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His departure comes shortly after it emerged that New York-listed Walgreens Boots Alliance (WBA), the owner of the British retailer, had decided for the second time in two years not to pursue a sale or IPO of the chain.
An announcement on Mr James’ departure is expected in the coming days.
It is not yet thought that WBA has a successor ready.
Mr James, who previously ran the electronics chain Dixons (now Currys), recently backed Sir Keir Starmer – a notable move given his long friendship with Lord Cameron, the Foreign Secretary.
He will leave Boots during the Nottingham company’s 175th anniversary.
Boots employs approximately 52,000 people and operates approximately 1,900 stores.
Recent trading performance has been strong, with WBA this week reporting that like-for-like sales at Boots rose 6% in the quarter to the end of 2016, and 5.8% in its retail and pharmacy businesses.
According to an insider, James had engineered a successful turnaround, growing market share for 13 consecutive quarters.
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It was a rare bright spot for WBA, which has had a torrid time and seen its shares plummet.
A spokesperson for WBA said this week: “As Walgreens Boots Alliance undergoes a strategic review of the company’s assets, we have taken a critical look at Boots.
“While we believe there is significant interest in this business at the right time, Boots’ growth, strategic strength and cash flow continue to be a significant contributor to Walgreens Boots Alliance.
“We continue to invest in Boots UK and look for innovative ways to help this business fulfill its potential.”
At a previous auction in 2022, only one bidder – a consortium of Apollo Global Management and Reliance Industries – made a formal offer worth around £5.5 billion.
However, growing concerns about the global economy led to major doubts among major banks that finance leveraged buyouts. Boots was among the biggest deals in Europe.
One of the other challenges facing potential buyers at the time was finding a suitable solution for Boots’ £8 billion pension scheme, one of the largest private pension funds in the UK.
This problem has now been resolved because an insurance deal has been concluded with Legal & General.
Like many retailers, Boots has endured a turbulent pandemic, with 4,000 job losses announced in 2020 as it restructures its Nottingham head office and store management teams.
Shortly before the pandemic, Boots earmarked around 200 of its UK stores for closure, reflecting changing shopping habits.
Boots’ history dates back to John Boot in 1849, when he opened a herbal medicine shop in Nottingham.
The 1000th store in the United Kingdom was opened in 1933.
In 2006, Boots merged with pharmaceuticals wholesaler Alliance Unichem, with buyout firm KKR acquiring the combined group the following year in an £11 billion deal.
In 2012, Walgreens acquired a 45% stake in Alliance Boots and completed the acquisition of the company two years later.
Boots declined to comment on James’ departure on Saturday.
