Rite Aid's bankruptcy leads to asset sale approval

In May 2025, a federal bankruptcy court in the United States approved the sale of more than 800 Rite Aid pharmacy store assets to major pharmacy chains and grocery store retailers. This decision came after Rite Aid filed for Chapter 11 bankruptcy protection for the second time within a two-year period, indicating the severe financial strain faced by the drugstore chain. The approved sale involves 64 physical Rite Aid locations situated in Idaho, Oregon, and Washington, which will subsequently be managed by CVS Health, along with prescription files from 625 Rite Aid pharmacies spread across 15 states. The sale also included remaining pharmacy assets that were approved for purchase by rival pharmacy chain Walgreens, as well as partnerships with grocery chains such as Kroger and Albertsons. This strategic move is common among pharmacy chains and retailers during bankruptcy proceedings, allowing companies like CVS and Walgreens to acquire valuable prescription files without facing the burden of additional debt associated with physical locations. Earlier instances of similar auctions were noted in 2019, where companies sought prescription files and related pharmacy assets amid financial restructuring efforts. Despite the court's approvals, the sale transactions are subject to regulatory approvals and standard closing conditions, as emphasized in a statement from CVS. Furthermore, although buyers have emerged for the customer files of 810 of Rite Aid’s stores, there remain approximately 200 stores for which buyers have yet to be identified, indicating a challenging landscape for Rite Aid amidst its bankruptcy proceedings. In connection with the ongoing sale process, Rite Aid's website listed over 1,200 operational stores in 15 states as of mid-May 2025, signifying its extensive reach prior to these significant reductions in assets. As Rite Aid navigates this tumultuous period, the implications of its asset sales will likely impact not only the pharmacy retail landscape but also the employees and communities reliant on these stores for access to medical care and services. The ongoing transition may lead to changes in service availability and employment prospects for those working at the stores now being sold, marking a critical juncture in Rite Aid's trajectory within the pharmaceutical industry.