May 15 (Reuters) - Bankrupt U.S. pharmacy chain Rite Aid
on Thursday said it agreed to sell pharmacy assets from more
than 1,000 store locations in separate transactions to CVS
Pharmacy, Walgreens, Albertsons ( ACI ), Kroger ( KR ) and Giant Eagle, among
others.
CVS Pharmacy will buy and operate many Rite Aid and
Bartell Drugs stores in Washington, Oregon and Idaho, Rite Aid
said in a filing.
Rite Aid stores will remain open, and customers can continue
to use pharmacy services, including prescription refills and
immunizations, without interruption, it said.
The sale includes prescription files and other goods, a
person familiar with the agreements said.
Walgreens declined to comment. The other bidders did not
immediately respond to requests for comment.
Earlier this month, Rite Aid filed for bankruptcy for the
second time in less than two years, after poor performance in
its retail business made it difficult for the company to
maintain sufficient cash flow and restock its retail inventory.
The company has received court approval to pursue a
rapid-fire sale of its pharmacy business. Rite Aid is scheduled
to conduct a hearing to approve the sales on May 21. The sales
will remain subject to regulatory notices and approvals.
The Pennsylvania-based company entered bankruptcy with over
$2 billion in debt and has warned employees about likely job
cuts. Rite Aid Chief Executive Matt Schroeder said on Thursday
the company would try to preserve jobs during the transition.
"These agreements ensure our pharmacy customers will
experience a smooth transition while preserving jobs for some of
our valued team members," Schroeder said in a note.
Bloomberg had previously reported on CVS' bid.