The basics:

• Rite Aid to sell pharmacy assets to CVS, Walgreens & others
• 1,000+ stores and prescription files affected nationwide
• More closures expected in May and June — including in NJ

Rite Aid plans to sell the pharmacy assets of its 1,000-plus locations nationwide to several competing chains, including CVS Pharmacy and Walgreens.

In a May 15 press release, the now-bankrupt Philadelphia-based company said the proposed series of transactions also includes Albertsons, Kroger and Giant Eagle.

In addition to purchasing prescription files of 625 Rite Aid pharmacies across 15 states, CVS said it plans to acquire and operate 64 of the chain’s locations in Idaho, Oregon and Washington.

During the transition, Rite Aid said stores will remain open so customers can continue to fill prescriptions and get immunizations without interruption.

The transactions are subject to approval by the U.S. Bankruptcy Court for the District of New Jersey, the venue where Rite Aid filed earlier this month for Chapter 11 bankruptcy protection. A hearing is scheduled for May 21.

Sales of pharmacy assets are common when drug stores close. They typically include prescription files, patient data and inventory. Rite Aid did not say what specific assets it would include nor did it disclose how much each chain bid.

In a statement, Rite Aid CEO Matt Schroeder said a “key priority” for the company “is to ensure that as many of our loyal customers as possible continue to receive the pharmacy services and care they require without interruption.”

He continued, “These agreements ensure our pharmacy customers will experience a smooth transition while preserving jobs for some of our valued team members.”

Selling ‘substantially all’ assets

In seeking bankruptcy for the second time in less than two years, Rite Aid said it is pursuing the sale of “substantially all” assets.

While the 63-year-old chain goes through the court-supervised process, employees will continue receiving pay and benefits, and stores will remain open.

Rite Aid initially filed for bankruptcy in October 2023. That move came amid falling sales and heavy debt from 1,600 lawsuits – including one from the federal government – that accused the company of contributing to the deadly U.S. opioid epidemic. Since then, it has closed more than 500 pharmacies nationwide. The closures include three dozen locations in New Jersey.

Rite Aid emerged from Chapter 11 in September 2024 with a reduced brick-and-mortar presence, decreased debt, new executive leadership and $2.5 billion in exit financing to support the business going forward. Additionally, Rite Aid now operates as a private company with ownership held by many of its creditors.

In its latest petition, Rite Aid said poor performance in its retail business has made it difficult to maintain sufficient cash flow and keep inventory stocked.

Store closures

The chain now plans to shutter 47 underperforming locations this month across the U.S. as part of its initial wind-down – including Neptune and Sicklerville in N.J. Another wave of closings will reportedly begin in June and will impact about 1,000 outposts nationwide.

New York-headquartered A&G Real Estate Partners has put nearly all of Rite Aid’s 1,240 stores across 15 states on the auction block. Of the available sites, 1,194 are leased locations and 50 are fee-owned properties.

The list includes Rite Aid’s entire New Jersey footprint of 60 stores as well as a distribution center in Delran and its 23,144-square-foot headquarters on Intrepid Avenue in Philadelphia.