In This Article:
(Bloomberg) -- CVS Health Corp. is trying to buy stores and patient data from Rite Aid Corp., the beleaguered pharmacy chain that is going out of business after filing for bankruptcy a second time earlier this month.
Most Read from Bloomberg
-
As Coastline Erodes, One California City Considers ‘Retreat Now’
-
Maryland’s Credit Rating Gets Downgraded as Governor Blames Trump
CVS, which already owns the largest chain of retail pharmacies in the US, agreed to acquire and operate 64 Rite Aid stores in Washington, Oregon and Idaho, as well as patient prescription information from 625 pharmacies in 15 states, subject to bankruptcy court approval and other conditions, CVS said in a statement. Bloomberg News earlier reported CVS’s interest.
The additional stores would broaden CVS’s reach in a part of the country where it has a smaller presence per capita than in other regions.
Rite Aid has also received multiple bids on some of its pharmacy assets, such as patient data and inventory, from Walgreens Boots Alliance Inc., Albertsons Cos., Kroger Co., Giant Eagle Inc. and others, Rite Aid Chief Executive Officer Matthew Schroeder told employees Thursday, according to a recording of the meeting reviewed by Bloomberg News. The potential buyers are interested in continuing to employ Rite Aid workers, he said.
“We are not going to emerge from bankruptcy,” Schroeder said to employees. “Once our assets are sold, Rite Aid will no longer exist.”
During the sale process, Rite Aid stores will remain open, and keep filling prescriptions and providing vaccines, Rite Aid said in a press release.
The bankruptcy court will hold a hearing on the sale process on May 21, Rite Aid said. On June 6, the court will hold a hearing on Rite Aid’s plan for financing while it winds down the company, Schroeder told employees.
Walgreens, Albertsons, Kroger and Giant Eagle did not provide comments.
Rite Aid fell victim to falling profits from prescriptions, government fines related to opioid pain medicines and a decline in consumer spending. The challenges have affected all the major retail pharmacies, which have closed more than a thousand of stores across the country in recent years. CVS, which had more than 9,000 locations at the end of last year, plans to close about 270 in 2025. Walgreens said it will shutter hundreds of stores this year. Rite Aid closed more than 850 stores during its first bankruptcy proceedings in 2023 and 2024, according to court filings.