New York
CNN
—
Rite Aid has sold the pharmacy services of most of its stores across the United States to several rivals.
The bankrupt company announced the fire sale Thursday, with CVS Pharmacy, Walgreens, Albertsons and Kroger scooping up Rite Aid’s pharmacy services at more than 1,000 locations.
“These agreements ensure our pharmacy customers will experience a smooth transition while preserving jobs for some of our valued team members,” Rite Aid CEO Matt Schroeder said in a statement, adding that the move ensures its customers will “receive the pharmacy services and care they require without interruption.”
CVS Pharmacy was the biggest buyer, snapping up the prescription files of more than 600 Rite Aid stores spanning 15 states and agreeing to buy 64 Rite Aid locations in Idaho, Oregon and Washington. The transactions still have to be approved by the relevant bankruptcy court.
As Rite Aid navigates the Chapter 11 bankruptcy process, the company said its stores remain open and customers can continue to use their pharmacy services “without interruption.”
Earlier this month, Rite Aid filed for bankruptcy for the second time, just seven months after the chain exited the previous Chapter 11 bankruptcy and emerged as a private company.
Rite Aid first filed for bankruptcy in October 2023, becoming a casualty of a miserable environment for drug stores, exacerbated by its runner-up status to bigger chains and expensive legal battles for allegedly filling unlawful opioid prescriptions, which pushed its debt to nearly $4 billion.
The company is a distant third-largest nationwide standalone pharmacy chain in the US and the seventh-largest pharmacy overall when taking into account big box chains. It has about 1,240 stores remaining — roughly half of the number it had just two years ago.
