Bankrupt pharmacy chain Rite Aid announced Thursday that it has agreed to sell more than 1,000 of its stores to a group of competitors, including CVS Pharmacy, Walgreens, Albertsons, Kroger and Giant Eagle.
In a regulatory filing, the company confirmed that CVS will take over and operate many Rite Aid and Bartell Drugs locations in Washington, Oregon and Idaho.
The transactions are part of a court-supervised sales process that aims to quickly offload Rite Aid’s pharmacy assets.
Despite the sales, the company said its stores will remain open during the transition, and customers can continue to access pharmacy services such as prescription refills and immunizations without disruption.
The store sales come just weeks after Rite Aid filed for bankruptcy for the second time in less than two years.
The company said its struggling retail business had severely weakened cash flow, making it difficult to replenish inventory and meet its financial obligations.
Rite Aid received approval from U.S. Bankruptcy Judge Michael Kaplan to move ahead with expedited sale procedures, aiming to finalize agreements and receive court approval by a hearing scheduled for May 21.
As part of the bankruptcy process, Rite Aid has also warned employees of potential layoffs. The Pennsylvania-based company entered bankruptcy with more than $2 billion in debt.
According to Reuters, CVS and Rite Aid both confirmed the store purchase plans, but Walgreens declined to comment. The other potential buyers have not yet responded to media inquiries.
Bloomberg had previously reported CVS’s bid as the largest in the ongoing asset sale.
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