Rite Aid to sell 1,000 stores to CVS, Walgreens and others
By Sabrina Valle
(Reuters) -Bankrupt U.S. pharmacy chain Rite Aid (NYSE: US90274J5618=UBSS ) on Thursday said it agreed to sell more than 1,000 stores in separate transactions to CVS Pharmacy, Walgreens, Albertsons (NYSE: ACI ), Kroger (NYSE: KR ) and Giant Eagle, among others.
CVS Pharmacy will buy and operate many Rite Aid and Bartell Drugs stores in Washington, Oregon and Idaho, the company said in a filing.
Rite Aid stores will remain open, and customers can continue to use pharmacy services, including prescription refills and immunizations, without interruption, it said.
Walgreens declined to comment. The other bidders did not immediately respond to requests for comment.
Earlier this month, Rite Aid filed for bankruptcy for the second time in less than two years, after poor performance in its retail business made it difficult for the company to maintain sufficient cash flow and restock its retail inventory.
The company has received court approval to pursue a rapid-fire sale of its pharmacy business, with the company aiming to reach agreements with buyers and get a sale approved in two weeks.
Under the sale procedures approved by U.S. Bankruptcy Judge Michael Kaplan, Rite Aid would seek final approval of one or more sales at a May 21 court hearing.
The Pennsylvania-based company entered bankruptcy with over $2 billion in debt and has warned employees about likely job cuts.
Bloomberg had previously reported on CVS’ bid.