EDITORIAL: Danger - CVS and Hasbro's Future in Rhode Island in Peril

EDITORIAL: Danger - CVS and Hasbro's Future in Rhode Island in Peril

The news of Hasbro potentially leaving Rhode Island for Boston, coupled with late Monday’s report that CVS may potentially be broken up into multiple companies, could be devastating to Rhode Island’s economy, employment, and identity.

Both Hasbro and CVS are symbols of Rhode Islanders doing amazing things — decades of innovation, effort, and entrepreneurship.

The company’s origins are somewhat similar — small, family businesses that grew and transformed, and grew and transformed. 

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Both expanded to be among the biggest in their respective industries — toys and entertainment and pharmacy and health.

Today, CVS is the 6th largest corporation in America by sales — ahead of Exxon, Microsoft, and Google. 

For Hasbro, it was the Hassenfeld family that started with textile remnants (rags) and later a few toys. The business grew into one of the world’s largest toy companies and a major force in entertainment and gaming.

CVS was started in Lowell, Massachusetts, by brothers Stanley and Sidney Goldstein and their partner Ralph Hoagland. Then, they added a pharmacy in Cranston, and from there, it was a rocket ship ride. Mergers and acquisitions drove growth. It was a hometown company — CEOs like Tom Ryan were URI grads.

Now, both companies are in a degree of turmoil, and there is heightening risk that one or both could be gone.

Between the two companies, thousands and thousands of jobs are at risk. The challenges for the two companies are distinct — their stocks have underperformed, there are questions of corporate leadership and there are significant competitors and changing landscapes.

The state’s economic development strategy is vacant and maybe more damaging is that Governor Dan McKee’s administration’s retention efforts appear to be "learn about the potential chaos from the media and then try to find phone numbers and seek meetings."

McKee has no personal or professional relationship with Hasbro CEO Chris Cocks or CVS CEO Karen Lynch. 

Rhode Island’s governmental leadership needs to get clued in. 

The danger for Rhode Island is the loss of thousands of high-paying opportunities, the future, and our very identity.

We asked Commerce RI’s director, Liz Tanner, for comment. She did not respond.

Governor McKee is on vacation.