Walgreens closures raise concerns about pharmacy access

Crain’s Chicago Businessexamined growing concerns over Walgreens store closures on Chicago’s South Side and the potential impact on healthcare access in neighborhoods already facing pharmacy shortages.

The story by Jon Asplund focused on recent closure announcements in Chatham and South Shore and the broader debate over whether private equity ownership is accelerating cuts in communities that can least afford to lose local pharmacies.

Matt Parr, communications director at the Private Equity Stakeholder Project (PESP), spoke with Crain’s about Walgreens’ acquisition by private equity firm Sycamore Partners and the financial pressures surrounding the deal.

“I’m worried that that line about theft being the reason doesn’t really add up,” Parr told Crain’s. “That rationale for closures all seem to be within days or weeks of each other.”

The article also highlighted PESP’s concerns about the heavily leveraged structure of the Walgreens acquisition and how rapid cost-cutting strategies can shape decisions around store closures.

Parr noted that the Walgreens deal was “hugely leveraged,” with roughly 70% debt financing, creating pressure for quick cost-cutting rather than long-term stability. He also pointed to Sycamore’s past ownership of Staples, where the firm closed a large share of stores while extracting significant dividends from the company.

The story connected the closures to broader concerns about “pharmacy deserts” in Chicago and the loss of access to essential healthcare services in underserved neighborhoods.

Read the full story: https://www.chicagobusiness.com/health-care/ccb-walgreens-closures-drugstore-deserts-20260507/