Following Rite Aid’s filing for bankruptcy in May, CVS Pharmacy acquired 63 former Rite Aid and Bartell Drugs stores in Idaho, Oregon and Washington, as well as the prescription files of 626 former Rite Aid and Bartell Drugs pharmacies in 15 states, the company said in a Wednesday (Oct. 15) press release.
CVS Health has completed the conversion of those stores and is now operating them, according to the release.
“We’re helping maintain and expand access to convenient and trusted pharmacy care across the U.S. and growing our retail footprint and presence in local communities,” Len Shankman, executive vice president and president, pharmacy and consumer wellness at CVS Health, said in the release. “From our innovative pharmacy care programs to our exclusive store brand products, we look forward to showing Rite Aid and Bartell Drugs patients and customers all that CVS has to offer.”
To help ensure that the customers of the now-closed brands can get the service they need, CVS Pharmacy distributed most of the prescription files it acquired from Rite Aid to CVS Pharmacy stores that are within three miles of a Rite Aid store; hired more than 3,500 former Rite Aid and Bartell Drugs employees; and made targeted investments in existing CVS Pharmacy locations in the form of scheduling support, hiring and training, per the release.
Rite Aid filed for Chapter 11 bankruptcy protection in May, less than a year after emerging from a previous restructuring effort in which it closed around 850 store locations.
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The company said “it is pursuing a strategic and value-maximizing sale process for substantially all of its assets.”
It was reported later in May that Rite Aid was closing additional stores and handing off business to rivals. The company reached agreements to sell prescription files for more than 1,000 pharmacy locations, nearly all of its stores, with CVS, Walgreens, Albertsons, Kroger and Giant Eagle among the bidders.
CVS said in July that during the second quarter, its same-store pharmacy sales jumped roughly 18%, while prescription volumes climbed 6% and retail script share reached 27.8%. The firm attributed part of that lift to spill-over traffic from Rite Aid as that chain closed its stores.
