A remedy for thousands of patients worried about their prescriptions with the now-bankrupt pharmacy chain Rite Aid has been approved in federal court.
A New Jersey judge ruled that the Rx files will transition to CVS Health, Walgreens and other pharmacies and various grocers.
Rite Aid, which previously filed for Chapter 11 bankruptcy and announced the closure of over 100 stores, said on May 15 it “successfully entered into a series of sale agreements and pharmacy services transition agreements.” The sale agreements were approved on May 21 in the U.S. Bankruptcy Court of New Jersey, according to Rite Aid’s bankruptcy docket.
The sale agreements include transitioning pharmacy assets from more than 1,000 Rite Aid locations across the U.S. to CVS Pharmacy, Walgreens, Albertsons, Kroger, Giant Eagle and other operators. Additionally, many Rite Aid and Bartell Drugs stores in Washington state, Oregon and Idaho will be operated by CVS Pharmacy as a part of the sale agreements.
During the transition of prescription files, Rite Aid said its stores will remain open and customers can continue to access their pharmacy services, including prescription refills and immunizations. Before the bankruptcy filing, Rite Aid operated 1,240 stores across 15 states.
“A key priority for Rite Aid is to ensure that as many of our loyal customers as possible continue to receive the pharmacy services and care they require without interruption,” Matt Schroeder, CEO of Rite Aid, said in a statement. “These agreements ensure our pharmacy customers will experience a smooth transition while preserving jobs for some of our valued team members.”
64 Rite Aid stores transferring to CVS
CVS Pharmacy announced the approvals on May 21 for its bids on the prescription files of 625 Rite Aid pharmacies across 15 states, as well as 64 Rite Aid stores in Idaho, Oregon and Washington state.
The Woonsocket, Rhode Island-headquartered retail pharmacy chain said additional details on the acquisitions will be available closer to the transaction closing dates in the coming weeks.
“We’re well-positioned to serve our existing customers and patients, as well as those who may be transitioning to us from Rite Aid and are excited to introduce them to our best-in-class front store and pharmacy offerings, upon the closings of the transactions,” CVS Pharmacy said in a statement.
CVS said it aims for the transition of prescriptions to be “seamless for patients and customers.” The pharmacy noted sale transactions are “subject to applicable regulatory approvals and other customary closing conditions.”
Walgreens acquiring prescription files from some Rite Aid stores
Walgreens reached an agreement to take on prescription files from certain Rite Aid pharmacy locations in nine states, a company spokesperson said in a statement to USA TODAY on May 22, adding that the deal was subject to closing conditions.
The acquisition comes as Walgreens in the midst of its own wave of store closures. The pharmacy chain said it would close about 500 locations in fiscal year, part of a three-year effort to shutter roughly 1,200 underperforming stores.
“This path forward strengthens our ability to meet the needs of the patients and communities we serve,” the spokesperson told USA TODAY.
What is next for Rite Aid?
After filing for bankruptcy for the second time in less than two years, Rite Aid continues move through Chapter 11 proceedings.
“As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible,” Schroeder said when Rite Aid announced the bankruptcy filing.
Rite Aid has buyers for customer files at 810 of its stores, but did not find a buyer for files at 200 other locations, according to Reuters. While the deadline to enter bids for Rite Aid’s pharmacy assets (May 13) has passed, the deadline to enter bids for the chain’s remaining assets, including the Thrifty Ice Cream business, is June 13, with an auction date set for June 20.
Contributing: James Powel, USA TODAY; Reuters
Jonathan Limehouse covers breaking and trending news for USA TODAY. Reach him at JLimehouse@gannett.com.
This article originally appeared on USA TODAY: Rite Aid stores, prescription files shifting to CVS, Walgreens, more
