Rite Aid Sells Pharmacy Assets to CVS, Walgreens, Kroger Amid Bankruptcy

Rite Aid (NYSE:US90274J5618=UBSS), the struggling U.S. pharmacy chain, has agreed to sell pharmacy assets from over 1,000 store locations as part of its ongoing bankruptcy proceedings. Buyers include major retailers like CVS Pharmacy, Walgreens, Kroger (NYSE:KR), Albertsons (NYSE:ACI), and Giant Eagle.

CVS will acquire and operate many Rite Aid and Bartell Drugs stores across Washington, Oregon, and Idaho, according to a recent filing. Despite the asset sales, Rite Aid emphasized that stores will remain open and customers can continue accessing prescription refills, vaccinations, and other pharmacy services without disruption.

The sale primarily involves prescription files and related assets. While Walgreens declined to comment, the other companies involved have yet to issue statements.

This marks Rite Aid’s second bankruptcy filing in under two years, driven by weak retail performance, mounting debt exceeding $2 billion, and ongoing cash flow issues. The Pennsylvania-based company has already received court approval to fast-track the sale of its pharmacy business, with a final approval hearing scheduled for May 21. All transactions are still subject to regulatory approval.

Rite Aid CEO Matt Schroeder said the company aims to ensure a seamless transition for pharmacy customers while minimizing job losses. “These agreements ensure our pharmacy customers will experience a smooth transition while preserving jobs for some of our valued team members,” Schroeder noted.

The move signals a major shift in the U.S. retail pharmacy landscape, as industry giants like CVS and Kroger strengthen their market positions by absorbing Rite Aid’s assets. This development comes as pharmacy chains across the country navigate rising competition, tighter margins, and shifting consumer behavior.

The outcome of the May 21 court hearing will be critical in shaping the next chapter for Rite Aid and its employees.