Pharmacy chain Walgreens and reality star Kourtney Kardashian are reportedly among those considering the remaining assets in Rite Aid’s ongoing bankruptcy process, according to two sources familiar with the matter. These sources preferred to remain anonymous due to the confidential nature of the discussions.
Alongside Walgreens, Authentic Brands Group and WHP Global Brands are also looking into Rite Aid’s intellectual property and loyalty programs. The three brand management companies have all previously acquired intellectual property from bankrupt retailers.
Kardashian, known for co-founding Lemme and running the wellness and lifestyle site Poosh, is particularly interested in Rite Aid’s Thrifty ice cream brand, as stated by some insiders.
Authentic Brands has an extensive portfolio that includes Reebok and Saks Fifth Avenue, and it has previously bought brands like Forever 21 and Barneys from bankruptcy. WHP Global was involved in the revival of Toys “R” Us post-bankruptcy in 2017, while Marquee bought out fashion retailer BCBG Max Azria Group.
Rite Aid currently operates about 1,200 stores and services around 8 million customers. The pharmacy chain filed for bankruptcy in May for the first time in two years.
U.S. Bankruptcy Judge Michael Kaplan has already approved the sale of customer prescription files to 13 buyers, including CVS Health and Walgreens. Brand management companies like Authentic, Marquee, and WHP usually acquire brand intellectual properties and get licenses from operating partners who handle manufacturing and sales.
Thrifty Ice Cream, which Rite Aid sells at its counters and in cartons, has a long-standing history dating back to its launch in 1940 in West Hollywood, with several celebrities, including Kardashian, being known customers.
Sources indicate that private equity firms focusing on consumer brands are also eyeing Rite Aid’s situation.
Representatives from Rite Aid, Walgreens, Authentic Brands, WHP, and Marquee did not provide any comments when approached.
The deadline for current bids on the remaining assets is set for 5 p.m. on June 18th.
Rite Aid, based in Pennsylvania, has been grappling with substantial debt, inflationary challenges, and mounting competition in the market.
