Rite Aid Begins Transitioning, Selling Assets
In the midst of its second bankruptcy filing, Rite Aid Corp. has entered into a series of sales and pharmacy services transition agreements to ensure that its customers receive continuous care.
Those deals include the rolling transition of pharmacy assets from more than 1,000 Rite Aid locations across the U.S. to operators including CVS Pharmacy, Walgreens, Albertsons, Kroger, Giant Eagle and others. CVS will also purchase and operate an undisclosed number of Rite Aid and Bartell Drugs stores in Washington, Oregon and Idaho.
The embattled pharmacy retailer asserts that Rite Aid stores will remain open and customers can continue to access their pharmacy services without interruption during the transition.
“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,” said CEO Matt Schroeder. “These agreements ensure our pharmacy customers will experience a smooth transition while preserving jobs for some of our valued team members.”
In a news release from May 5, Rite Aid confirmed that it had started voluntary Chapter 11 proceedings to speed a sale. In addition, the company reported that it has secured $1.95 billion in new funding from existing lenders to help attract a buyer or buyers.
Rite Aid first filed for bankruptcy in 2023 and, in the ensuing months, closed several stores and restructured its organization. The chain emerged from bankruptcy last fall as a private company and tapped Schroeder for the CEO role.
Philadelphia-based Rite Aid operates approximately 1,700 retail pharmacy locations across 16 states. The company is No. 26 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.
