Rite Aid, the U.S. pharmacy chain currently in bankruptcy, announced on Thursday that it has agreed to sell pharmacy assets from more than 1,000 of its stores. The sales will take place in several separate deals involving major pharmacy chains such as CVS Pharmacy, Walgreens, Albertsons, Kroger, and Giant Eagle.
According to a filing by Rite Aid, CVS Pharmacy will purchase and operate many Rite Aid and Bartell Drugs locations in Washington, Oregon, and Idaho. Despite the sales, Rite Aid stores will stay open, and customers will continue to have uninterrupted access to pharmacy services, including prescription refills and immunizations.
A source familiar with the agreements confirmed that the sales include the transfer of prescription files and other related goods.
Walgreens declined to comment on the deal. Other bidders, including Albertsons, Kroger, and Giant Eagle, have not responded to requests for comment.
Rite Aid filed for bankruptcy earlier this month—its second bankruptcy filing in less than two years. The company’s poor retail performance made it difficult to maintain adequate cash flow and restock inventory.
With court approval, Rite Aid is moving quickly to sell its pharmacy business. A hearing to approve the sales is scheduled for May 21. The sales will still require regulatory approval before being finalized.
The company, based in Pennsylvania, entered bankruptcy with over $2 billion in debt. It has also warned employees that job cuts are likely. However, Rite Aid CEO Matt Schroeder said the company aims to protect jobs during the transition.
“These agreements ensure our pharmacy customers will experience a smooth transition while preserving jobs for some of our valued team members,” Schroeder said in a statement.
Bloomberg had earlier reported on CVS’s bid for Rite Aid’s pharmacy assets.
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