After filing for bankruptcy earlier this month for the second time in less than two years, Rite Aid Corporation is offloading more than 1,000 pharmacies to rivals such as CVS and Walgreens as well as grocery chains such as Albertsons and Kroger.
In a press release, Rite Aid CEO Matt Schroeder said that the goal of transactions is to ensure continuity of care during the bankruptcy process; the company emphasized that all pharmacies will remain open through the transition to provide prescription refills and immunizations without interruption.
“These agreements ensure our pharmacy customers will experience a smooth transition while preserving jobs for some of our valued team members,” he said.
Warm welcomes: On the receiving end of the deal, Albertsons is giving Rite Aid customers a warm welcome—as well as a coupon. New customers are set to receive a “$15 off” coupon for their next grocery purchase, plus another coupon for every five subsequent prescriptions.
“As a community health partner, our dedicated pharmacists are committed to providing our customers with timely, safe and convenient access to medications and essential vaccines,” Anthony DalPonte, president of pharmacy and health at Albertsons, said in a statement.
CVS similarly promised it was working toward a “seamless” transition for Rite Aid customers in a blog post.
The US Bankruptcy Court will hold a hearing on Wednesday to approve the sales.
All or nothing: While Rite Aid’s first bankruptcy in 2023 aimed to optimize the chain’s footprint and restructure its debt, the Chapter 11 bankruptcy initiated on May 5 will help facilitate the sale of “substantially all of its assets.” Anything not sold during this process, per bankruptcy steward Kroll, will no longer be owned or operated by Rite Aid.
The bankruptcy comes as a difficult time for the pharmacy business. Earlier this spring, private equity firm Sycamore Partners took Walgreens private in a $23.7 billion after a rocky run on public markets.
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