Walgreens, which invested more than $6B during the pandemic for a majority stake in primary care chain VillageMD, has now written off most of that bet as it races to close VillageMD outlets across the country.
The retailer revealed a $6B net loss in its quarterly results, most of which was attributed to what Walgreens CFO Manmohan Mahajan called "a mismatch" in the value of VillageMD in Walgreens' balance sheet and the actual market value of the primary care clinic subsidiary.
Mahajan told investors during an earnings call that his team had discovered the discrepancy and as a result Walgreens was forced to take a $5.8B goodwill impairment charge.
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