Rite Aid sells over 1,000 pharmacies to competitors, including CVS and Walgreens
Less than two weeks after announcing it had filed for Chapter 11 bankruptcy and was seeking a “strategic and value-maximizing sale” of “substantially all of its assets,” Rite Aid has sold most of its remaining retail pharmacies to competitors.
Rite Aid has now confirmed a report from last week stating that CVS Health, Walgreens, Kroger, Giant Eagle and Albertsons were all seeking to buy stores and other assets. The company announced the sale of over 1,000 locations—representing the majority of its remaining pharmacies nationwide.
In announcing it had inked deals, Rite Aid said some stores would also be sold to buyers not mentioned in the initial report. The specific number of stores, their exact locations, and sales figures were not disclosed in a May 15 statement.
However, in its own announcement, CVS Health confirmed it is purchasing 64 Rite Aid pharmacies in Idaho, Oregon and Washington, with plans to assume operations. Additionally, CVS said it has agreed to acquire the prescription files of 625 Rite Aid pharmacies across 15 states, effectively taking over some of the business at those locations.
When announcing its bankruptcy, Rite Aid stated it would work to transfer patient prescriptions to nearby pharmacies to minimize disruption from store closures—the deal with CVS is part of that continuity plan.
“We’re working closely with Rite Aid on plans to ensure that the transition will be seamless for patients and customers and access to pharmacy care is not interrupted,” CVS said in a statement, adding it plans to absorb some displaced staff.
“Once the sale is finalized, we look forward to welcoming Rite Aid colleagues who are interested in applying to join the CVS team,” the company added.
All of the above transactions are subject to approval by a judge, as Rite Aid’s liquidation is being overseen by a bankruptcy court. Shortly after announcing its second Chapter 11 filing in less than two years, Rite Aid confirmed the closure of a Maryland distribution center and dozens of stores.
As of this writing, Rite Aid operates approximately 1,200 locations nationwide, most of which remain open. During the transition to new ownership, the company confirmed its stores will continue to operate normally.
The fate of the brand, which has been around since 1968, remains unknown.
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.