Latest news with #MatthewSchroeder
Boston Globe
16-05-2025
- Business
- Boston Globe
CVS bids on Rite Aid stores and patient data
Advertisement 'We're working closely with Rite Aid on plans to ensure that the transition will be seamless for patients and customers and access to pharmacy care is not interrupted,' said Thibault. Get Rhode Map A weekday briefing from veteran Rhode Island reporters, focused on the things that matter most in the Ocean State. Enter Email Sign Up The additional stores would further CVS's reach as a corporation that already owns Rite Aid received multiple other bids on some of its assets, including inventory and patient data, from 'We are not going to emerge from bankruptcy,' Rite Aid Chief Executive Officer Matthew Schroeder said to employees on Thursday, which was reported by Bloomberg. 'Once our assets are sold, Rite Aid will no longer exist.' Advertisement During the sale process, Rite Aid's stores will remain open, continue filling prescriptions, and provide vaccines, according to Thibault would not say how much CVS is offering for Rite Aid's assets, and did not answer questions about whether the chain would close any other of its stores. The company previously said it would The Pharmacy Guild, a union that has been 'We are especially concerned about the role of major chains like CVS, Walgreens, and Albertsons,' the union wrote in a statement. 'If these corporations are to absorb hundreds of new locations, there must be enforceable conditions attached to these sales: conditions that require stores to remain open for years; maintain or improve levels of service to patients and the community; respect the rights of employees to organize and take a neutral position on union efforts, and commit to bargaining in good faith.' The union urged regulators and policymakers to ensure these sales 'do not come at the expense of workers and the patients who rely on us.' A bankruptcy court judge is scheduled to conduct a hearing to approve the sales on May 21. Thibault said once the sale is finalized, Rite Aid employees who are interested can apply for their jobs at CVS. Rite Aid Related : Advertisement Rite Aid said then that its initial voluntary Chapter 11 filing would allow it to slash debt and resolve litigation. The company sold its relatively small Rite Aid was attempting to turn around its business in a tough environment for drugstores. Major chains and independent pharmacies have been Material from the Associated Press was used in this report. Alexa Gagosz can be reached at
Business of Fashion
15-05-2025
- Business
- Business of Fashion
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.
Bloomberg
15-05-2025
- Business
- Bloomberg
CVS Bids For Rite Aid Stores, Patient Files 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 Chief Executive Officer Matthew Schroeder told employees Thursday, according to a recording of the meeting reviewed by Bloomberg News.
Time Out
07-05-2025
- Business
- Time Out
New York will soon lose 178 Rite Aid locations across the state
Well, that's all, folks. Rite Aid is packing up and leaving New York for good. The full-service pharmacy chain has announced it will close all 178 stores across the state, reports CNN, following a second bankruptcy filing that puts the final nail in the coffin for one of America's once-largest drugstore empires. After emerging from an earlier bankruptcy in 2023, Rite Aid hoped a round of strategic closures would steady the ship. Spoiler: it didn't. This week's new Chapter 11 filing confirms the company will now sell off its remaining prescriptions, pharmacy and retail inventory, and other assets as part of a court-supervised wind-down. That means, for now, you can still fill your prescriptions in-store or online—but the days of grabbing your shampoo, allergy meds and emergency nail polish remover at Rite Aid are numbered. Why is Rite Aid closing its stores? According to Rite Aid's filing, the company will pursue a sale of its assets while continuing operations temporarily. Backed by $1.94 billion in new financing, Rite Aid says it will use this breathing room to find national and regional buyers for its core services, while transferring customer prescriptions to other pharmacy providers. CEO Matthew Schroeder acknowledged the company's ongoing struggles, blaming a fast-evolving retail and healthcare landscape and increased financial pressure. 'We are encouraged by meaningful interest from a number of potential national and regional strategic acquirors,' he said in a statement released with the filing, adding that protecting access to pharmacy services and preserving jobs remain top priorities. Rite Aid, founded in 1962, was once the third-largest drugstore chain in the country. But over the past decade, it's faced stiff competition from CVS and Walgreens, legal battles over its role in the opioid crisis, and the rise of online pharmacy disruptors. In short, the 60-year reign is over. There's no confirmed timeline yet for when each New York location will close, but the company has confirmed that all NY-based outposts are on the chopping block. So if your go-to Rite Aid is still open, consider this your last call! Whether you loved it or only went there in a cold medicine panic, dozens of New York neighborhoods will soon be Rite Aid-less—and that's no small shift.
Yahoo
07-05-2025
- Business
- Yahoo
Report: Rite Aid's 2nd bankruptcy is imminent amid reports of more store closures and layoffs
Less than a year after Rite Aid finally wrapped up its first bankruptcy proceedings, it's now reportedly planning to file for Chapter 11 protection a second time. Most Read from Fast Company Based on a new report from Bloomberg, Rite Aid employees received a letter today from CEO Matthew Schroeder stating that the company's negotiations with lenders for more capital have failed. He went on to explain that the pharmacy chain can no longer sustain itself and intends to file for Chapter 11 bankruptcy. Per the letter, the company will start by cutting jobs at its corporate offices in Pennsylvania, a move Schroeder attributed to 'the dramatic downturn in the economy.' An apparent copy of the letter is now making its rounds on Reddit, though Rite Aid has not publicly verified its accuracy. As of this writing, Rite Aid has not officially confirmed a second bankruptcy filing or publicly acknowledged the alleged impending job cuts. Fast Company has reached out to the pharmacy chain for more information on the report and will update this story accordingly. Bitter pills Over the past several years, Rite Aid has struggled with the Sisyphean task of recovering from an initial bankruptcy—but now, it seems that its restructuring efforts have fallen short. Rite Aid first filed for Chapter 11 back in 2023, a move that was intended to help the company reduce its debt. As part of the process, the chain received a financing commitment of $3.45 billion from lenders. In the following months, Rite Aid closed hundreds of stores across the U.S. to reduce costs and turn its finances around. As Fast Company reported in April, Rite Aid store closures have continued this year, with local media in New Jersey, California, and Oregon reporting on such closings recently. Emerging from bankruptcy a year ago Last June, Rite Aid asked for court approval of its restructuring plan, which was ultimately granted, allowing the company to emerge from the bankruptcy proceedings in September. At the time, the company reported that it had eliminated $2 billion of total debt and received $2.5 billion in exit financing. Now, though, it looks like that wasn't enough to get the company back on track. According to several previous reports from Bloomberg, the writing has been on the wall for this second Chapter 11 filing for several weeks.
