Breaking News: CVS Buys Rite Aid, Bartell Drugs

CVS Pharmacy announced today that they have acquired and are now operating 626 Rite Aid and Bartell Drugs locations across the United States.¹

The news comes 2 years after Rite Aid first declared bankruptcy in October 2023 and 5 months after they declared bankruptcy for the second time and closed all their stores in May 2025.²

According to a press release from CVS Pharmacy, they now have the prescription records for over 9 million patients who previously received their medications from Rite Aid and Bartell Drugs. Over 3500 former employees have been hired by CVS as part of the acquisition and asset transfer.¹

Len Shankman, executive vice president and president of Pharmacy and Consumer Wellness at CVS Health, said in a press release, “We’re helping maintain and expand access to convenient and trusted pharmacy care across the US and growing our retail footprint and presence in local communities.”

Why Did Rite Aid File for Bankruptcy?

Rite Aid first filed for bankruptcy in October 2023, citing lagging sales as stores like Amazon, Walmart, Target, and Costco began offering prescription drug and convenience services. The organization said its sales lagged by over half a billion dollars between March 2022 and May 2023.

In that same window of time, the Department of Justice filed suit against Rite Aid for its role in the opioid epidemic, saying it knowingly processed prescriptions for addictive painkillers despite "obvious red flags." The legal expenses and financial penalties pushed the company's debt to nearly $4 billion. The Department of Justice also sued Walgreens and CVS for similar offenses related to the opioid epidemic, but superior sales meant those chains were better able to manage the financial burden. ^2,3

Rite Aid emerged from bankruptcy in September 2024 by reducing debt and closing about 500 stores nationwide. In the long term, though, this was not enough for the company to regain its financial footing, and it declared bankruptcy a second time in May 2025.

Rite Aid has long been a distant third in the standalone pharmacy chain market. In October 2023, when they filed for bankruptcy for the first time, they were ranked seventh among pharmacy services, behind the larger stores mentioned above.³

How Does Rite Aid Compare to Other Pharmacies?

CVS and Walgreens have also faced challenges this year. CVS has closed over 1000 stores and is experimenting with smaller stores that offer only prescription services rather than retail, and Walgreens Boots Alliance said in March it would become a privately held company this year after a private equity firm purchased it. That news follows a report in which Walgreens said it lost billions in sales and closed more than 10% of their locations.^4-5

Both CVS and Walgreens have experimented with other ways to remain relevant in the shifting pharmacy business landscape, including launching clinical trial services to help patients enroll and access drugs currently in development. CVS phased out this service after about 2 years, though Walgreens' program is still operational.⁶

REFERENCES

1. CVS Health. CVS Pharmacy completes acquisition of Rite Aid assets nationwide. CVS Health News (Press Release). October 15, 2025. Available from: https://www.cvshealth.com/news/retail/cvs-pharmacy-completes-acquisition-of-rite-aid-assets-nationwide.html

2. Bacon A. Rite Aid closes all remaining stores after 63 years in business. ABC7. October 6, 2025. Accessed October 15, 2025. https://abc7.com/post/rite-aid-closes-remaining-stores-more-60-years-business/17937848/

3. Goldman D. Rite Aid files for Chapter 11 bankruptcy. CNN. October 15, 2023. Accessed October 15, 2025. https://www.cnn.com/2023/10/15/business/rite-aid-bankrupty-hnk-intl/index.html

4. Valinsky J. CVS is opening smaller stores that only have pharmacies. CNN. March 10, 2025. Accessed October 15, 2025. https://www.cnn.com/2025/03/10/business/cvs-small-stores/index.html

5. Valinsky J, Ramishah M. Walgreens is going private in an up to $24 billion deal. CNN. March 6, 2025. Accessed October 15, 2025. https://www.cnn.com/2025/03/06/economy/walgreens-private-deal/index.html

6. Clinical Trials Arena. CVS confirms closure of clinical trial unit by end of 2024. Clinical Trials Arena. Published May 2023. Accessed October 15, 2025. https://www.clinicaltrialsarena.com/news/cvs-clinical-trial-service-closure/