Concerns are mounting among Boots employees as the Nottinghamshire-based chemist gears up for a change in ownershippotentially twice in quick succession. A worker at Boots stated, "Weve had several rounds of cost-cutting and it could happen again," reflecting the anxiety circulating among staff.

The impending transition involves US private equity firm Sycamore Partners, which is reportedly close to finalizing a substantial $10 billion (7.8 billion) deal to take over the publicly traded parent company of Boots, Walgreens Boots Alliance. Experts anticipate that Sycamore is likely to adopt its usual strategy of selling off assets, a tactic that has yielded mixed results in the past with other companies such as Staples and the now-defunct Jones Group, which previously owned Kurt Geiger.

Boots, which operates over 1,800 stores and employs approximately 51,000 individualsincluding about 6,000 at its headquarters in Beeston, just three miles southwest of Nottinghamhas seen attempts to sell the business by Walgreens before, with valuations reaching as high as 5 billion. This latest move marks another chapter in a history of ownership changes spanning two decades. The company underwent a merger with Alliance Unichem in 2006, was acquired by private equity firm KKR in 2007, and later saw Walgreens take a significant stake in 2012, ultimately completing the acquisition in 2014.

As Boots prepares for its latest ownership change, fears are growing that the beloved chain, a staple in British retail, may face further cuts. This concern is acutely felt in Nottingham, where Boots represents the largest private-sector employer and has become synonymous with the citys identity since its founding in 1849 by John Boot, who opened a small herbalist shop on Goose Gate.

Michelle Aduhene, a Beeston resident, expressed her apprehensions regarding the repercussions that changes at Boots might have on the town. "This situation is reminiscent of the closure of the Raleigh bicycle factory two decades ago. While it led to the construction of a university on the site, I worry about whether it truly benefits the economy," she stated. Local businesses that rely on Boots employees for their trade could also suffer from a potential downsizing of the chain.

Some Boots employees, however, expressed a sense of resignation about the ongoing restructuring, noting they have already endured numerous cost-cutting measures. One staff member remarked, "It all happens so far up the line it wont affect us." Meanwhile, the vast Boots campus, which hints at a once-thriving empire, is increasingly leased out to other entities, with some buildings now sitting vacant. A portion of the property, approximately 17 hectares, has been sold to Keepmoat for redevelopment into residential housing.

Occupants continue to exit; for instance, Alliance Healthcare, which once owned Bootss wholesale arm, is set to close its Beeston warehouse next year, and Fareva, the former manufacturing arm responsible for No7, Soltan, and Liz Earle products, departed late last year. With rumors circulating regarding potential further sales of the headquarters, Boots appears to be evaluating its vacant properties, although the company has not confirmed any such plans.

Despite fears of closures, several employees remain hopeful about the future under new ownership. "Boots has improved dramatically in recent years, focusing on beauty counters and utilizing technology to capture a share of the online market," noted a source familiar with the organization. However, the difficulties inherent in maintaining profitability within the competitive landscape of retail remain pronounced, especially with the growing dominance of online shopping and discounters like Lidl and Home Bargains.

To exacerbate concerns, a poll conducted by the campaign group Organise revealed that over a quarter (27%) of Boots employees are anxious about job security, while more than a third (36%) fear deteriorating working conditions in the event of a takeover. "Given the unpredictable nature of the high street, it's uncertain who would be interested in acquiring a retailer with such a significant presence," one employee mused.

While the prospect of a public listing seems unlikely due to the current volatility in stock markets and skepticism surrounding consumer company growth, a private sale appears to be the leading option. Potentially interested parties have included India's Reliance Industries and restructuring expert Apollo Global Management, while others like CVC and Bain Capital previously considered the group but were deterred by the high asking price.

Stefano Pessina, the architect behind Boots' previous ownership deals, remains a pivotal figure in these negotiations. Sources indicate he might retain a stake in the company and could aim to influence its future direction if he sees a viable path to profitability. Yet not all industry insiders are pessimistic; one source argued that there are substantial opportunities for investment in Boots, particularly given the UKs aging population and the governments emphasis on primary healthcare. Boots has been expanding its services to include obesity clinics and vaccinations, which could represent new revenue streams.

As the scenario unfolds, the future of Boots remains uncertain. The company has already closed over 300 locations in recent years, and new owners will likely scrutinize the chains extensive property holdings amid rising retail costs, shifting consumer habits, and intense competition.