CVS, Kroger among bidders for Rite Aid stores and prescription data
As Rite Aid is looking to liquidate its assets as part of Chapter 11 bankruptcy, competitor CVS Health has made a move to buy a large number of its retail pharmacies in three states, a new report revealed.
According to Bloomberg, CVS is looking to buy a significant number of closing Rite Aid stores in Washington, Oregon and Idaho, greatly expanding its market share in three states where it currently has relatively few pharmacies.
Further, Rite Aid revealed that Walgreens, Albertsons, Kroger and Giant Eagle have also expressed interest and submitted bids on certain properties.
Bloomberg said the news comes directly from Rite Aid CEO Matthew Schroeder, who disclosed the offers during an internal meeting with employees; however, details such as monetary figures and the specific number of stores possibly being sold were not shared.
In a copy of the meeting call obtained by the outlet, Schroeder also revealed that CVS was interested in purchasing Rite Aid’s prescription data, which would likely prevent other competitors from accessing customer and patient records.
When asked to confirm what Schroeder told employees, Bloomberg said CVS declined to comment.
Regardless, a court will need to approve any transaction, as Rite Aid’s bankruptcy effectively signals the end of the company.
Second bankruptcy in two years
On May 5, the struggling pharmacy chain revealed it had filed for Chapter 11 bankruptcy protections for the second time in less than two years, and was seeking buyers for nearly all of its assets. Patients who rely on Rite Aid pharmacies were promised in a statement that their prescriptions would be “smoothly” transferred to a competitor’s location as stores begin to close.
However, for now, most of Rite Aid’s 1,240 pharmacies nationwide remain open and serving customers.
That is changing quickly, however. Already, some 68 stores are set to imminently close, along with a Maryland distribution center. These are in addition to the hundreds of pharmacies Rite Aid closed over the last couple of years, as it made attempts to restructure its business.
For now, no court date has been set to finalize a plan to dissolve the company and its assets. It remains unclear what will happen to the brand, which has been around since 1968.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.