CVS Health has confirmed plans to acquire and operate 64 Rite Aid stores in Idaho, Oregon, and Washington. The acquisition is part of a bidding process following Rite Aid’s recent filing for Chapter 11 bankruptcy protection.
With over 9,000 CVS Pharmacy locations across all 50 states and Washington, D.C., CVS also disclosed an agreement to acquire the prescription files of 625 Rite Aid pharmacies in 15 states. Of those 625 file transfers, 78 are located in Idaho, Oregon, and Washington.
CVS appears to be the largest proposed buyer among several operators participating in Rite Aid’s sale process. Rite Aid has stated that it has entered into a series of sale agreements and pharmacy services transition agreements involving more than 1,000 store locations. These transactions include the transfer of pharmacy assets to CVS Pharmacy, Walgreens, Albertsons, Kroger, and Giant Eagle, among others.
According to Rite Aid, the transition includes the operation by CVS Pharmacy of many Rite Aid and Bartell Drugs stores in the states of Washington, Oregon, and Idaho. As part of this process, Rite Aid has confirmed that its stores will remain open and that customers will be able to continue accessing pharmacy services such as prescription refills and immunizations without interruption.
It is not yet clear whether Walgreens or other participating buyers intend to operate any of the physical Rite Aid store locations or are acquiring only prescription files. Walgreens declined to comment, and other companies involved did not respond to requests for comment.
Rite Aid CEO Matt Schroeder stated that a central focus during the transition is maintaining pharmacy services and minimizing disruption to customers. “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,” Schroeder said. “These agreements ensure our pharmacy customers will experience a smooth transition while preserving jobs for some of our valued team members.”
Rite Aid filed for bankruptcy earlier this month, marking the company’s second Chapter 11 filing in less than two years. The company cited challenges in its retail business that affected cash flow and inventory restocking. Upon entering bankruptcy, Rite Aid reported over $2 billion in debt and informed employees of likely job cuts.
The company has received court approval to pursue a rapid sale of its pharmacy assets. A hearing to approve the sales is scheduled for May 21. The transactions will be subject to regulatory notifications and approvals.
Rite Aid has described the sale process as involving pharmacy assets, prescription files, and other goods. A person familiar with the agreements confirmed that CVS would buy and operate many Rite Aid and Bartell Drugs store locations in Washington, Oregon, and Idaho.
