Walgreens, Authentic Brands, Kourtney Kardashian among those evaluating Rite Aid assets, sources say
A Rite Aid sign is displayed on the facade of a store in Pittsburgh, Jan. 23, 2023. (AP Photo/Gene J. Puskar, file)
NEW YORK — Pharmacy chain Walgreens and reality star turned entrepreneur Kourtney Kardashian are among those picking over the remaining assets in Rite Aid's bankruptcy, according to two people familiar with the matter.
In addition to Walgreens, brand management companies Authentic Brands Group, WHP Global and Marquee Brands have been evaluating Rite Aid's intellectual property and potentially its loyalty program, according to the people who asked not to be named because the process is private.
All three brand management companies have bought the IP of other retailers out of bankruptcy.
Authentic Brands, which owns Reebok and is a Saks Fifth Avenue investor, bought the IP of fast-fashion chain Forever 21 and luxury seller Barneys out of bankruptcy. WHP Global resurrected Toys 'R' Us following its 2017 bankruptcy, while Marquee acquired fashion retailer BCBG Max Azria Group out of bankruptcy.
Kardashian, co-founder of gummy vitamin maker Lemme and owner of wellness and lifestyle website Poosh, has expressed interest in Rite Aid's ice cream brand Thrifty, the people said.
Rite Aid, which operates about 1,200 stores and has around 8 million customers, filed for bankruptcy in May for the second time in two years.
U.S. Bankruptcy Judge Michael Kaplan already approved store closures and a sale of customer prescription files to 13 buyers including CVS Health CVS.N and Walgreens.
Brand management firms like Authentic, Marquee and WHP typically buy a brand's IP and then license it to operating partners which have the manufacturing, design and sales responsibilities.
The pharmacy chain's Thrifty ice cream brand is sold by the scoop at counters in certain Rite Aid locations or by the carton at Rite Aid and other retailers nationwide. Thrifty launched in 1940 at a small factory in West Hollywood and counts several celebrities as customers, including Kardashian, who could buy the brand by herself or with a partner, the people said.
Some consumer-focused private equity firms are also eyeing Thrifty, the sources said.
Rite Aid, Walgreens, Authentic Brands, and WHP declined to comment. Marquee Brands and representatives for Kardashian did not respond to requests for comment.
The current bid deadline for the remaining assets is June 18 at 5 p.m. ET (2100 GMT).
Pennsylvania-based Rite Aid has struggled under a high debt load, inflationary pressures and increased competition.
(Reporting by Abigail Summerville in New York; Editing by Dawn Kopecki and Bill Berkrot)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
an hour ago
- Globe and Mail
Could Investing $10,000 in Markel Make You a Millionaire?
Turning a $10,000 investment into $1 million or more would mean a 100X result. But it isn't as far-fetched as it might seem, and you don't necessarily need to invest in volatile high-tech companies to make it happen. One of my favorite candidates to be a millionaire-making stock in my own portfolio is insurance company Markel (NYSE: MKL), which does things much differently than its insurance industry peers. In fact, Markel's business model often draws comparisons to an early stage Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), and to say that Berkshire has been a millionaire maker would be a major understatement. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » With that in mind, here's a brief overview of Markel's business model, why the stock could be a good value today, and how it could turn $10,000 into a million-dollar investment simply by continuing to execute on its time-tested growth strategy. Markel in a nutshell If you aren't familiar with Markel, here's a quick overview of its business. There are three main components. At its core, Markel is an insurance company. It mainly operates in specialty insurance (the excess and surplus, or E&S lines, in insurance terms) and reinsurance. These are types of insurance that can be rather difficult, but that have enormous profit potential. In addition, Markel invests some of its float in the stock market, similar to Berkshire Hathaway. As of the latest information, Markel owned about $11.3 billion worth of stocks (and the largest holding happens to be Berkshire). The company's equity investments have delivered 12.8% annualized returns over the past five years. Finally, Markel Ventures is the company's division that acquires entire businesses. Unlike Berkshire, which needs to buy massive companies to move the needle, Markel has the luxury that it can invest a meaningful amount of money in early stage businesses with lots of growth potential. Just to name a few examples, Markel Ventures owns a luxury handbag maker, a houseplant company, a homebuilder, and several others. Last year, Markel Ventures generated $5.1 billion in revenue. This isn't exactly Berkshire's business model, but it's a pretty similar one. And it follows one of Warren Buffett's top rules for conglomerate building: Be willing to own minority shares of businesses (common stocks) while pursuing opportunistic ways to own entire companies as well. Over the 60-year period that Warren Buffett has run Berkshire Hathaway, this has resulted in a total return of more than 5,500,000%. To say that this is a time-tested model would be an understatement. A 'baby Berkshire' at a discount Markel recently announced a strategic review of its business due to lackluster profitability in its insurance business and generally subpar stock performance. Just to name a few things that have already been done, Markel decided to pull the plug on several unprofitable insurance lines and has already decided that improving the technology capabilities of its insurance business needs to be a priority. According to management, Markel's intrinsic value has grown at an 18% annualized rate over the past five years. But its stock price has only grown at a 9% rate. Management estimates a $2,610 per-share intrinsic value for the business, and the stock trades for about $1,935 as I'm writing this. That's a big valuation gap. Management also announced a $2 billion stock buyback program along with the review and said that this will be a near-term focus of capital deployment. So, the company believes its stock price doesn't reflect the business' value and is putting its money where its mouth is. Could Markel make you a millionaire? The short answer is yes. But it's unlikely to happen quickly. Markel is designed to be a long-term compounder that can produce returns that are superior to the overall stock market. Over long periods, the S&P 500 has produced total returns of about 10% annualized, and in the modern era (since Warren Buffett has been running the company), Berkshire Hathaway has produced 19.9% annualized returns. So, assuming that Markel successfully beats the S&P over the long term, here's how long it could take to turn a $10,000 investment into $1 million: Long-Term Annualized Total Return Years to Turn $10k Into $1 Million 12% 42 14% 36 16% 32 18% 29 20% 26 Data source: Author's own calculations. Years are rounded to the nearest whole number. Now, I don't necessarily think Markel, or any other company, will produce Berkshire-like returns over a 60-year period. But I do believe that with Markel's strategy, it's entirely possible to significantly outpace the market. In short, the most likely scenario (which would still be very impressive) would be one of the first few rows in the chart. For context, since it went public in 1986, Markel has delivered 15% annualized returns, so there is real-world evidence that the company can beat the market. Of course, this assumes that you invest $10,000 once. The best way to approach a stock like Markel or Berkshire Hathaway (or most other compounding-focused stocks for that matter) is to invest incrementally over time. But the point is that even with a single investment, a stock with steady market-beating returns can have massive wealth-building potential over time. Should you invest $1,000 in Markel Group right now? Before you buy stock in Markel Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Markel Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,102!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $882,344!* Now, it's worth noting Stock Advisor 's total average return is996% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Globe and Mail
an hour ago
- Globe and Mail
Prediction: 3 Stocks Berkshire Hathaway Will Add to Its Portfolio After Warren Buffett Steps Down as CEO
Next year, Berkshire Hathaway will have a new CEO. Warren Buffett, who has been in charge for decades, is stepping down and Greg Abel will be taking over. It's a monumental shift for the business, and while there may not necessarily be drastic changes in the day-to-day operations, there could be some adjustments to Berkshire's holdings. There are three stocks that I think Abel should consider adding to Berkshire's portfolio once he takes over: Microsoft (NASDAQ: MSFT), Enbridge (NYSE: ENB), and Nvidia (NASDAQ: NVDA). Here's why these stocks are great long-term investments and why they fit the Berkshire mold. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Microsoft Buffett distanced himself from Microsoft because of his close association with co-founder Bill Gates. But with Buffett no longer at the helm, it opens the path for Berkshire to create a position in Microsoft under Abel. Microsoft is the type of business that checks all the boxes for Berkshire. It has solid fundamentals, many growth opportunities, and a strong brand that is known all over the world, giving it a fantastic competitive moat. In the trailing 12 months, the software company generated more than $270 billion in revenue, amassing nearly $97 billion in profit along the way. Microsoft is a leading company in artificial intelligence (AI) and cloud computing, and its office software is a staple in many businesses around the world. This is an excellent stock for investors to own for the long haul, and I think it may just be a matter of time before it finds its way into Berkshire's holdings. Enbridge With Abel being from Canada and having strong roots in Alberta, I think he'll be inclined to put his stamp on Berkshire. And what better way to do so than by opening up a position in a top oil and gas company from Canada -- Enbridge. Berkshire is no stranger to the sector and holds multiple stocks from there. Enbridge is known for its consistency and long-term dependability, which is why it also looks like a model Berkshire-type investment. This year, the company expects to meet or exceed its financial guidance, and if it does, it'll be the 20th consecutive year that Enbridge has done so. Few companies can generate that kind of consistency. And Buffett has always valued predictability and stability in businesses. The pipeline company generated revenue totaling just under 61 billion Canadian dollars over the trailing 12 months. And with Enbridge closing on multiple acquisitions in the U.S. within the past year few years, its financials could look even better in the future. Along with an attractive dividend that yields nearly 6%, this is a stock that can be ideal for any type of long-term investor. Enbridge is another stock I expect may be a staple in Berkshire's portfolio once Abel is at the helm. Nvidia For years, iPhone maker Apple has been the top holding in Berkshire's portfolio. But the company has arguably been losing its luster due to a fumbled AI rollout and delaying key features on its latest phones. And it highlights much more than that: a lack of innovation. At the very least, it's lagging behind its key rivals. A changing of the guard may be overdue at Berkshire. While Buffett has long been a fan of Apple's business, Abel may see an opportunity to change that up. Investing in Nvidia is a move that could make much more sense. Even for people who are unfamiliar with AI, investors have come to know about Nvidia's dominance in the chip world, and I believe it now has the strong brand that Apple once did, which is synonymous with innovation. Nvidia has dominant market share in the AI chip market, and its fundamentals are incredible. Over the past four quarters, it has net a profit of $77 billion on revenue of nearly $149 billion. Given its impressive market position and huge profit margins, it seems unfathomable that the stock isn't in Berkshire's portfolio already. I can only assume that it's because Buffett may not want too much exposure to tech or that he's simply too unfamiliar with it. For Abel, however, this can be yet another opportunity for him to change up Berkshire's holdings with more growth-oriented businesses. While Apple may have performed well over the past decade, it may no longer make sense for it to be Berkshire's top holding. Nvidia could be a much better fit. Should you invest $1,000 in Microsoft right now? Before you buy stock in Microsoft, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Microsoft wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,102!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $882,344!* Now, it's worth noting Stock Advisor 's total average return is996% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Enbridge, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Globe and Mail
an hour ago
- Globe and Mail
Stock Split Watch! Does Netflix Stock or Costco Stock Split First?
Stock splits can be exciting for investors, as they make shares more affordable. *Stock prices used were the afternoon prices of June 9, 2025. The video was published on June 11, 2025. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Should you invest $1,000 in Costco Wholesale right now? Before you buy stock in Costco Wholesale, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Costco Wholesale wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,102!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $882,344!* Now, it's worth noting Stock Advisor 's total average return is996% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Netflix. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
