Rite Aid has agreed to sell pharmacy assets from more than 1,000 store locations to several major competitors, including CVS Pharmacy, Walgreens, Albertsons, Kroger, and Giant Eagle, as part of its ongoing bankruptcy proceedings, according to Reuters.
In a filing Thursday, the Pennsylvania-based pharmacy chain confirmed that CVS will acquire and operate a number of Rite Aid and Bartell Drugs locations in Washington, Oregon, and Idaho.
The sales, which include prescription files and related assets, are structured as separate transactions with each buyer, according to a source familiar with the deals.
Despite the asset sales, Rite Aid said its stores will remain open, and customers can continue to access pharmacy services, including prescription refills and immunisations, without interruption.
The deals follow Rite Aid’s second bankruptcy filing in under two years, triggered by weak retail performance, mounting debt, and supply chain challenges that strained its cash flow and inventory levels.
The company entered bankruptcy with more than $2 billion in debt and has warned employees of potential job cuts.
Rite Aid has received court approval to fast-track the sale of its pharmacy business and is scheduled to hold a hearing to finalise the agreements on May 21. The transactions are still subject to regulatory review and approval.
“These agreements ensure our pharmacy customers will experience a smooth transition while preserving jobs for some of our valued team members,” CEO Matt Schroeder said in a statement to staff.
Walgreens and the other parties have so far declined to comment.
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