Walgreens Boots Alliance stock was sinking Wednesday after initially spiking on reports it is in talks to sell itself to Sycamore Partners, a private equity firm, after years of declining stock performance.
The stock was down more than 7.5% to $9.66 on Wednesday morning after topping $11 immediately after the news of the possible sale.
At its peak in 2015, Walgreens was valued at over $100 billion. Now, its market value has plummeted to about $7.5 billion, following struggles in both its pharmacy and retail sectors, according to the Wall Street Journal.
Walgreens was dropped from the Dow Jones Industrial index earlier this year because the company has lost so much value. It had been on the Dow since 2018.
The company has faced financial challenges on all fronts from settlements with shareholders to incurring fines from the federal government for fraudulent practices.
While Walgreens closed 1,200 stores, Walmart, emerged as a competitor and strengthened its presence in the pharmaceutical market by offering prescription delivery to customers.
Under CEO Tim Wentworth, Walgreens scaled back on healthcare investments and closed underperforming stores amid third-quarter fiscal results showing that 25% of its current stores did not align with its long-term strategy.
Wentworth's efforts to turn around the company has not returned the results he was expecting.
Sycamore Partners, a private equity firm known for its retail investments, may restructure the company and sell off parts of Walgreens or partner with others to change the company's financial trajectory, said the Wall Street Journal.
The deal, if finalized, would expect to be completed early next year, according to the news outlet.
In September, Walgreens was ordered to pay the Department of Justice $106 million over allegations of filing false prescription claims in a decade-long practice of bilking the government.
