CVS To Buy And Operate 64 Rite Aid Stores In Pacific Northwest

CVS Health has officially announced its plans to acquire and operate 64 Rite Aid stores in Idaho, Oregon, and Washington as part of a bidding process initiated after Rite Aid filed for bankruptcy protection. This move by CVS marks the company as the primary proposed buyer for Rite Aid’s remaining stores, which total over 1,200 locations that the company aims to sell or close.

In addition to acquiring these physical store locations, CVS has also agreed to purchase the prescription files of 625 Rite Aid pharmacies across 15 states where CVS currently operates. Out of these 625 file acquisitions, 78 pharmacies are situated in the states of Idaho, Oregon, and Washington. This strategic acquisition by CVS comes shortly after Rite Aid disclosed a series of sale agreements and pharmacy services transition agreements with various operators such as CVS Pharmacy, Walgreens, Albertsons, Kroger, and Giant Eagle.

Rite Aid’s decision to file for Chapter 11 bankruptcy protection for the second time in less than two years has paved the way for these sale transactions to take place. As part of the transition process to CVS and other buyers, Rite Aid has assured customers that all stores will remain open, and pharmacy services, including prescription refills and immunizations, will continue without interruption.

It remains uncertain whether other buyers like Walgreens will choose to operate Rite Aid brick-and-mortar stores or solely focus on acquiring patient prescription files. The primary objective for Rite Aid during this transition period is to ensure the continuity of care for its loyal customers while also preserving jobs for its team members.

By opting to purchase prescription files and related pharmacy assets, CVS, Walgreens, and other buyers can avoid taking on additional debt associated with physical store locations. This practice of acquiring prescription files during Chapter 11 bankruptcy proceedings is common among pharmacy chains, retailers, and grocers in the pharmacy industry.

In the past, similar auctions for prescription files and pharmacy assets have taken place, such as the case of Shopko in 2019, where Walgreens Boots Alliance, CVS Health, and Rite Aid were successful bidders. As of the latest update, Rite Aid currently operates 1,240 stores across the United States, with a significant presence in California, Pennsylvania, and New York.

The transaction between CVS and Rite Aid is pending approval from the U.S. Bankruptcy Court for the District of New Jersey, along with other regulatory approvals and customary closing conditions. More details regarding this acquisition will be disclosed following the upcoming hearing on the sale to CVS Pharmacy.