By Sabrina Valle
(Reuters) -Bankrupt U.S. pharmacy chain Rite Aid (NYSE:US90274J5618=UBSS) on Thursday said it agreed to sell pharmacy assets from more than 1,000 store locations in separate transactions to CVS Pharmacy, Walgreens, Albertsons (NYSE:ACI), Kroger (NYSE: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.