CVS Bids for Rite Aid Stores in Pacific Northwest
CVS Health Corp. is trying to buy stores and patient data from Rite Aid Corp., the beleaguered pharmacy chain that is going out of business after filing for bankruptcy a second time earlier this month.
CVS, which already owns the largest chain of retail pharmacies in the US, put in a bid for a significant number of stores in Washington, Oregon, and Idaho, as well as patient prescription information, Rite Aid CEO Matthew Schroeder told employees Thursday, according to a recording of the meeting reviewed by Bloomberg News.
The additional stores would broaden CVS's reach in a part of the country where it has a smaller presence per capita than in other regions.
A CVS spokesperson declined to comment. Rite Aid didn't immediately provide comment.
Rite Aid has also received multiple bids on some of its pharmacy assets, such as patient data and inventory, from Walgreens Boots Alliance Inc., Albertsons Cos., Kroger Co., Giant Eagle Inc. and others, Schroeder said. The potential buyers are interested in continuing to employ Rite Aid workers, he said.
'We are not going to emerge from bankruptcy,' Schroeder said to employees. 'Once our assets are sold, Rite Aid will no longer exist.'
Walgreens, Albertsons, Kroger and Giant Eagle did not immediately provide comment.
Bids will be presented to the bankruptcy court on May 21, Schroeder said. On June 6, the court will hold a hearing on Rite Aid's plan for financing while it winds down the company.
The drugstore chain fell victim to falling profits from prescriptions, government fines related to opioid pain medicines and a decline in consumer spending. The challenges have affected all the major retail pharmacies, which have closed more than a thousand of stores across the country in recent years. CVS, which had more than 9,000 locations at the end of last year, plans to close about 270 in 2025. Walgreens said it will shutter hundreds of stores this year. Rite Aid closed more than 850 stores during its first bankruptcy proceedings in 2023 and 2024, according to court filings.
CVS said in February it expects a 5 percent drop in adjusted operating income from the division that houses its retail locations in 2025. It also makes money selling health insurance plans and pharmacy benefit management services.
Pharmacy chains such as CVS and Walgreens have been negotiating with pharmacy benefit managers to get paid more for prescriptions.
By Ike Swetlitz
Learn more:
Rite Aid Set to File Second Bankruptcy, Announces Job Cuts
The company was unable to secure additional capital from lenders in order to continue operating the business and now intends to file Chapter 11.
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