Walgreens takes £4bn dividend from UK arm as Boots sale deadline looms

The high street chemist’s holding company Superior Holdings paid $4.1bn (£3.4bn) in dividends to Walgreens last year and a $909.6m (£744m) dividend the year before that, despite taking advantage of government support schemes worth millions of pounds during the pandemic.

Another UK holding firm, WBA Financial, paid out a $353m (£289m) dividend to Walgreens in 2021.

During the pandemic, Boots received furlough payments worth £36m, PPE grants worth £11m and £55m in business rates relief.

Boots also received £136m in advanced funding from the NHS and borrowed, but has since repaid, a further £300m from the Bank of England’s Covid corporate finance facility.

As an essential retailer, Boots remained open throughout the pandemic but has struggled to keep the business on track.

The retailer cut 6,500 jobs during the pandemic and is now up for sale by its American owners Walgreens.

A Walgreens spokeswoman said the dividends did not come “directly or indirectly” from Boots UK and that drawing the government funds was a necessity to keep the business operating during an  “extremely challenging and uncertain time”. 

The deadline for bids for Boots is today, May 16.