CVS bids for Rite Aid stores, patient data in Pacific Northwest, Bloomberg News reports

(Reuters) -Healthcare conglomerate CVS Health (NYSE:CVS) has bid for a significant number of stores and patient data in the Pacific Northwest from bankrupt pharmacy chain operator Rite Aid (NYSE:US90274J5618=UBSS), Bloomberg News reported on Thursday.

CVS put in a bid for stores in Washington, Oregon, and Idaho, as well as patient prescription information, Rite Aid CEO Matthew Schroeder told employees, according to a recording of the meeting reviewed by Bloomberg News.

Rite Aid has also received multiple bids on some of its pharmacy assets, such as patient data and inventory, from Walgreens Boots Alliance (NASDAQ:WBA), Albertsons (NYSE:ACI), Kroger (NYSE:KR), Giant Eagle and others, Schroeder said, according to the report.

Rite Aid and the bidders did not immediately respond to Reuters’ 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, with the company aiming to reach agreements with buyers and get a sale approved in two weeks.

Schroeder said Rite Aid is not going to emerge from bankruptcy and said that the company will no longer exist after its assets are sold, the report added.

Under the sale procedures approved by U.S. Bankruptcy Judge Michael Kaplan, bids for Rite Aid’s pharmacy assets were due by May 13, and Rite Aid will seek final approval of one or more sales at a May 21 court hearing.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.

The Pennsylvania-based company entered bankruptcy with over $2 billion in debt, and has warned employees about likely job cuts.

KR: A Bull or Bear Market Play?

Don't miss out on the next big opportunity! Stay ahead of the curve with ProPicks – 6 model portfolios fueled by AI stock picks with a stellar performance this year..In 2024 alone, ProPicks' AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.With portfolios tailored for Dow stocks, S&P stocks, Tech Stocks, and Mid Cap stocks, you can explore various wealth-building strategies.So if KR is on your watchlist, it could be very wise to know whether or not it made the ProPicks lists.

Unlock ProPicks now