Bankrupt Rite Aid is selling 64 stores in the Pacific Northwest to its drugstore chain rival CVS Pharmacy, while shuttering the remaining 1,000 retail locations in its fleet as part of its Chapter 11 wind-down.
Philadelphia-based Rite Aid on Thursday said CVS would be acquiring and operating some of its namesake and Bartell Drugs stores in Washington, Oregon and Idaho. Rite Aid has also struck a deal to transfer pharmacy assets from more than 1,000 of its store locations across the U.S. to operators including CVS, Walgreens Boots Alliance, Albertsons Cos., Kroger and Giant Eagle.
“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," Matt Schroeder, the company's CEO, said in a statement. "These agreements ensure our pharmacy customers will experience a smooth transition while preserving jobs for some of our valued team members.”
Rite Aid didn't respond to an email and phone call from CoStar News seeking comment.
However, Woonsocket, Rhode Island-based CVS issued a statement, saying it had "agreed to acquire the prescription files of 625 Rite Aid pharmacies across 15 states in areas that CVS serves and to acquire and operate 64 Rite Aid stores" in Idaho, Oregon and Washington. It didn't identify which locations it was buying.
Overall, Rite Aid has three stores in Idaho, nearly 40 in Oregon and roughly 80 in Washington.
The sale transactions still must be approved by the U.S. Bankruptcy Court for the District of New Jersey, which has set a hearing on the deals for Wednesday, according to Rite Aid. Additional details about the transaction will be available following the hearing, CVS said.
"We’re well-positioned to serve our existing customers and patients, as well as those who may be transitioning to us from Rite Aid," CVS said.
Rite Aid filed for Chapter 11, the second time in less than two years, earlier this month. At the time, the pharmacy chain said it wanted to sell its assets, including its stores, and was in active discussions with "multiple interested potential acquirers." It first filed for Chapter 11 in October 2023, emerging in September 2024 with about 1,300 drugstores after restructuring. When it filed the second time, it had 1,277 stores.
Just a day after most recently seeking bankruptcy protection, Rite Aid put leases for about 1,200 stores across 15 states up for bidding. The company handling that sale process, A&G Real Estate Partners, declined to comment Friday.
The largest U.S. drugstore chains — not only Rite Aid but also CVS and Walgreens — for the past few years have all been struggling through financial obstacles and closing hundreds of underperforming stores due to shifting consumer habits, lower reimbursement rates and stiffer competition from rivals such as Amazon and Walmart.
To drive its turnaround, in March Walgreens forged an agreement to go private in a $10 billion buyout deal with Sycamore Partners.
For the record
Paul, Weiss, Rifkind, Wharton & Garrison is serving as legal adviser, Guggenheim Securities is serving as investment banker, and Alvarez & Marsal is serving as financial adviser to Rite Aid.