At one time, Rite Aid had abt 5,000 stores, and soon they will be down to ZERO! Walgreens 10-15yrs ago was worth 100 billion dollars, and now there are rumors that they are selling the entire chain to a private equity firm. Years ago Walgreens had ~ 11,000 stores, and now they are down to abt 8500 stores. Typically, these private equity firms buy distressed companies, and they start selling off parts that are not as profitable as they would like or should be. They will cut the operating cost overhead to the bare bones and sell what is left for 2-3 times what they paid for the chain.
Most likely, whoever buys the Rite Aid stores will close them, and move the Rx files to one of their nearby stores, and close the Rite Aid stores. In two or three years, we will probably see similar things happening to what is left of the Walgreens chain.
How many more pharmacy deserts will be created by all this “consolidation”?
Arkansas has passed a new law that prohibits PBM from owning pharmacies. CVS which owns the largest PBM Caremark, is threatening to close 23 stores they have in Arkansas.
Pres Trump is going after our Rx meds so that our Rx meds are the lowest prices sold to any nation on the planet. The term for this is “favored nation status”.
We have so many middlemen within our healthcare system that a lot of other countries don’t have. Since the 5 largest PBM are owned by the 5 largest insurance companies. This is going to be one hell of a legal battle between TWO GOLIATHS.
Rite Aid offloads more than 1,000 pharmacies to former rivals
The pharmacy chain is undergoing a bankruptcy process to sell “substantially all of its assets.”
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.
Filed under: General Problems
Leave a Reply