Rite Aid selling pharmacy assets to rivals; CVS to acquire 64 Rite Aid stores
Rite Aid Corp. is in the early stages of winding down operations.
The pharmacy retailer, which declared bankruptcy earlier this month, said it has entered into a series of sale agreements and pharmacy services transition agreements. The agreements include moving pharmacy assets from more than 1,000 Rite Aid locations across the U.S. to operators that include CVS Pharmacy, Walgreens, Albertsons, Kroger, Giant Eagle and others.
CVS was the biggest buyer, agreeing to acquire and operate 64 Rite Aid stores in Idaho, Oregon and Washington, along with the prescription files of 625 Rite Aid pharmacies across 15 states in areas that it currently serves.
When Rite Aid filed for bankruptcy in May (its second filing in less than two years), the company said it was pursuing a "strategic and value-maximizing sale process" for substantially all of its assets.
Rite Aid that, during the transition, its stores will remain open, and customers can continue to access their pharmacy services, including prescription refills and immunizations.
“These agreements ensure our pharmacy customers will experience a smooth transition while preserving jobs for some of our valued team members,” said Rite Aid CEO Matt Schroeder.
The sale transactions are subject to approval by the U.S. Bankruptcy Court for the District of New Jersey. The court is currently scheduled to conduct a hearing to approve the sales on May 21, 2025.
According to its website, Rite Aid has 1,240 stores across the U.S., with California and Pennsylvania having the most number of locations. The company had approximately 2,000-plus stores when it filed for bankruptcy in 2023.
Advisors
Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal advisor, Guggenheim Securities, LLC is serving as investment banker, and Alvarez & Marsal is serving as financial advisor to the Company. Joele Frank, Wilkinson Brimmer Katcher is serving as strategic communications advisor to the Company.
