Rite Aid To Sell Pharmacy Assets From More Than 1,000 Stores To CVS, Walgreens And Grocers

CVS Health, Walgreens and grocery store chains are among the pharmacy operators Rite Aid will be selling prescription files and related pharmacy assets to from more than 1,000 stores, the company confirmed Thursday night.

It’s a going out of business sale of sorts for Rite Aid after the drugstore chain filed for Chapter 11 bankruptcy protection last week for the second time in less than two years. It’s unclear exactly how many Rite Aid drugstores will remain open but Rite Aid indicated CVS plans to buy and operate an undisclosed number of Rite Aid and Bartell Drugs brand stores located in Washington, Oregon, and Idaho. CVS had no comment when reached Thursday evening.

In a statement released Thursday evening, Rite Aid said “it has successfully entered into a series of sale agreements and pharmacy services transition agreements,” the company said. “This includes the rolling transition of pharmacy assets from more than 1,000 store locations across the U.S. to operators including CVS Pharmacy, Walgreens, Albertsons, Kroger, and Giant Eagle, among others, as well as the sale and operation by CVS Pharmacy of many Rite Aid and Bartell Drugs stores located in Washington, Oregon, and Idaho.”

During the transition to CVS, Walgreens and other buyers, RiteAid said “stores will remain open, and customers can continue to access their pharmacy services, including prescription refills and immunizations, without interruption.”

“A key priority for Rite Aid is to ensure that as many of our loyal customers as possible continue to receive the pharmacy services and care they require without interruption,” Rite Aid chief executive officer Matt Schroeder said. “These agreements ensure our pharmacy customers will experience a smooth transition while preserving jobs for some of our valued team members.”

By buying the prescription files, CVS and Walgreens and others would avoid taking on more debt from brick-and-mortar stores. It’s common for pharmacy chains, other retailers and grocers in the pharmacy business to pursue prescription files and related pharmacy assets during Chapter 11 bankruptcy proceedings.

In 2019, for example, Walgreens Boots Alliance, CVS Health and Rite Aid were among the winning bidders for prescription files and related pharmacy assets auctioned off from 120 Shopko locations as part of the general merchandise retailer’s financial restructuring at that time.

Shopko was exiting the pharmacy business as part of a turnaround plan by the Green Bay, Wis.-based retailer. More than 20 bidders bid on the prescription files and other assets ended up buying Skopko customer prescription files during that process.

Rite Aid last week announced that it is “pursuing a strategic and value-maximizing sale process for substantially all of its assets,” the company said. “To facilitate this process, the company and its subsidiaries commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of New Jersey.”

Less than seven months ago, Rite aid emerged from federal bankruptcy protection, operating in 16 states after shedding more than 500 stores during the bankruptcy proceedings.

But the plan under new Rite Aid management hasn’t worked out so closures of stores is already under way and the company is no longer honoring “reward points” and will “no longer honor Rite Aid gift cards or accept any return or exchanges beginning June 5, 2025.”

As of Thursday night, Rite Aid operated 1,240 stores in the U.S. with most of them located in California, Pennsylvania and New York, according to the drugstore chain’s store locator.

“The sale transactions are subject to approval by the U.S. Bankruptcy Court for the District of New Jersey,” Rite Aid said Thursday night. “The Court is currently scheduled to conduct a hearing to approve the sales on May 21, 2025. Upon approval from the Court, the sales will remain subject to certain regulatory notices and approvals, and other customary closing conditions.”