The CEO and co-founder of Chicago-based primary care provider VillageMD has resigned, a move that comes as Walgreens Boots Alliance considers selling its stake in the business.
VillageMD spokesperson Molly Lynch confirmed Wednesday that Tim Barry has stepped down as CEO and board chair and that the company’s board has appointed VillageMD Chief Operating Officer Jim Murray to serve as interim CEO “effective immediately.” Lynch did not answer questions about why Barry departed.
Deerfield-based Walgreens said in a statement: “We look forward to continuing to partner with Jim Murray as he assumes day-to-day leadership responsibilities.” Murray has been “integral in helping lead the company’s turnaround as VillageMD makes meaningful progress and positions itself for profitable growth,” Walgreens added. A Walgreens representative also did not answer questions about why Barry resigned.
Walgreens once had big plans to become more of a health care destination, partly through VillageMD. Walgreens invested billions of dollars in VillageMD and had planned to put Village Medical clinics in 1,000 of its stores by 2027.
But Walgreens has been backing away from that plan. In March, CEO Tim Wentworth said Walgreens had recorded a $5.8 billion impairment charge related to VillageMD, and that VillageMD would close 160 clinics. In August, Walgreens said in a filing with the Securities and Exchange Commission that it was considering selling all or part of its VillageMD business.
Wentworth said during Walgreens’ most recent earnings call that VillageMD is “not a crucial part of our future.” Wentworth took over as Walgreens CEO in October 2023.
During that same earnings call, Wentworth said that Walgreens plans to focus more on its “legacy strength as a retail pharmacy led company.” He said during the call that Walgreens planned to close 1,200 of its stores — about 14% of its U.S. locations — over the next three years as it faces continued financial losses.
