Rite Aid Sells Pharmacy Assets of Over 1,000 Stores to Competitors Amid Bankruptcy Struggles
Rite Aid has announced the sale of pharmacy assets from more than 1,000 of its stores to major rivals, including CVS Pharmacy, Walgreens, Kroger, and Albertsons, as part of its ongoing efforts to restructure under Chapter 11 bankruptcy.
The company revealed the deals on Thursday, describing the divestment as a critical step in ensuring uninterrupted service for its pharmacy customers. CVS emerged as the largest buyer, acquiring prescription records from over 600 Rite Aid stores across 15 states, as well as agreeing to purchase 64 physical locations in Idaho, Oregon, and Washington. All transactions are pending approval from the bankruptcy court.
“These agreements ensure our pharmacy customers will experience a smooth transition while preserving jobs for some of our valued team members,” said Rite Aid CEO Matt Schroeder in a statement. “This move guarantees our customers continue receiving the pharmacy services and care they require without disruption.”
Despite the asset sales, Rite Aid confirmed that its stores will remain operational and pharmacy services will continue during the bankruptcy process.
The announcement follows Rite Aid’s second bankruptcy filing in less than a year. The chain initially filed for Chapter 11 protection in October 2023 amid mounting legal and financial pressures, including billions in debt linked to its alleged role in the opioid crisis. It briefly emerged as a private company before re-entering bankruptcy earlier this month.
Once the third-largest standalone pharmacy chain in the U.S., Rite Aid now holds the seventh spot overall, counting big-box retailers. The company’s footprint has significantly shrunk, with approximately 1,240 stores still in operation – about half the number it had just two years ago.
