Rite Aid has announced the sale of its pharmacy operations at over 1,000 locations across the U.S. to competing chains, as part of its ongoing bankruptcy proceedings.
Major retailers including CVS Pharmacy, Walgreens, Albertsons, and Kroger have acquired prescription files and other pharmacy-related assets from Rite Aid. CVS emerged as the largest buyer, obtaining prescription records from more than 600 Rite Aid stores across 15 states and agreeing to purchase 64 store locations in Idaho, Oregon, and Washington. These sales are still subject to approval by the bankruptcy court.
“This move ensures a smooth transition for our pharmacy customers while also preserving jobs for many of our valued team members,” said Rite Aid CEO Matt Schroeder. He emphasized that customers will continue receiving pharmacy services without disruption during the transition.
Rite Aid is currently navigating its second Chapter 11 bankruptcy filing in less than a year. Although the company had emerged from its first bankruptcy as a private entity just seven months ago, it refiled earlier this month due to ongoing financial challenges.
The initial bankruptcy in October 2023 was driven by a difficult business climate for pharmacy chains, coupled with Rite Aid’s inability to compete with larger rivals and mounting legal costs tied to opioid-related lawsuits. These factors contributed to nearly $4 billion in debt.
Once one of the leading pharmacy chains in the U.S., Rite Aid has now dropped to the third-largest among standalone drugstores and the seventh-largest overall when including retailers with pharmacy services. Its store count has been cut in half over the past two years, now totaling around 1,240 locations.
Despite the ongoing restructuring, Rite Aid stated that its stores remain open and customers can still access pharmacy services as usual.
