WOONSOCKET, R.I. — CVS Health Corp. is looking to acquire dozens of stores and buy patient data from Rite Aid Corp., the pharmacy chain that is going out of business after it filed for bankruptcy for the second time.
During a bidding process in bankruptcy court, Woonsocket, R.I.-based CVS agreed to acquire and operate 64 of Rite Aid’s stores in Washington, Oregon, and Idaho. The corporation also agreed to acquire the prescription files of 625 Rite Aid pharmacies across 15 states in areas that CVS serves, CVS spokeswoman Amy B. Thibault confirmed in an email to the Globe on Friday.
The transaction is subject to the approval of the US Bankruptcy Court for the District of New Jersey, applicable regulatory approvals, and other customary closing conditions.
“We’re working closely with Rite Aid on plans to ensure that the transition will be seamless for patients and customers and access to pharmacy care is not interrupted,” said Thibault.
The additional stores would further CVS’s reach as a corporation that already owns the largest retail chain of pharmacies in the country.
Rite Aid received multiple other bids on some of its assets, including inventory and patient data, from Walgreens Boots Alliance Inc., Albertsons Cos., Kroger Co., Giant Eagle Inc., and others, Bloomberg News reported.
“We are not going to emerge from bankruptcy,” Rite Aid Chief Executive Officer Matthew Schroeder said to employees on Thursday, which was reported by Bloomberg. “Once our assets are sold, Rite Aid will no longer exist.”
During the sale process, Rite Aid’s stores will remain open, continue filling prescriptions, and provide vaccines, according to a company press release.
Thibault would not say how much CVS is offering for Rite Aid’s assets, and did not answer questions about whether the chain would close any other of its stores. The company previously said it would close 270 stores in 2025.
The Pharmacy Guild, a union that has been working to unionize pharmacy professionals employed by CVS, issued a statement on Friday, calling for the company to keep the Rite Aid stores open.
“We are especially concerned about the role of major chains like CVS, Walgreens, and Albertsons,” the union wrote in a statement. “If these corporations are to absorb hundreds of new locations, there must be enforceable conditions attached to these sales: conditions that require stores to remain open for years; maintain or improve levels of service to patients and the community; respect the rights of employees to organize and take a neutral position on union efforts, and commit to bargaining in good faith.”
The union urged regulators and policymakers to ensure these sales “do not come at the expense of workers and the patients who rely on us.”
A bankruptcy court judge is scheduled to conduct a hearing to approve the sales on May 21. Thibault said once the sale is finalized, Rite Aid employees who are interested can apply for their jobs at CVS.
Rite Aid sought Chapter 11 bankruptcy protection first in October 2023 in an attempt to restructure while dealing with losses and opioid-related lawsuits. On May 5, the corporation filed again for bankruptcy protection as the struggling drugstore chain said it will try to sell substantially all of its assets.
Rite Aid said then that its initial voluntary Chapter 11 filing would allow it to slash debt and resolve litigation. The company sold its relatively small pharmacy benefits management business, Elixir Solutions, for around $576 million.
Rite Aid was attempting to turn around its business in a tough environment for drugstores. Major chains and independent pharmacies have been closing stores and struggling with several challenges. But prescription profitability has grown tight and chains are also contending with increased theft, court settlements over opioid prescriptions, and shoppers who are drifting more to online shopping.
Material from the Associated Press was used in this report.
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