Dear UFCW Local 135 Rite Aid Members,
As you know, Walgreens agreed to buy Rite-Aid but still needs the Federal Trade Commission’s (FTC) approval to complete the deal. If the FTC approves, Walgreens will be required to sell stores to address the government’s antitrust issues.
Walgreens has agreed to sell 865 Rite Aid stores to pharmacy-operator Fred’s Inc. This would occur only if the FTC approves the merger and if Walgreens and Rite Aid complete the merger.
Fred’s Pharmacy has stated publicly that if it were to acquire these stores, it would continue to employ existing Rite Aid workers at the stores and operate under the Rite Aid banner. It would do so through a 24-month transition period. Rest assured that your union is doing everything within our power to make sure that Fred’s keeps its word. Protecting your jobs, your benefits, and your future is the top priority of our union family.
Fred’s Pharmacy (https://www.fredsinc.com/corporate/about-us/) currently operates about 650 stores, including 372 pharmacies, and had $2.2 billion in total revenues in 2015. Fred’s stores are located almost entirely in the southeastern United States. They also agreed to buy any additional stores that the FTC may require Walgreens to divest beyond the 865 stores. The companies have not identified the specific Rite Aid store locations that will be sold, but we expect that these stores will be those that are in close proximity to existing Walgreens stores.
No one has to go through this alone; our union family is doing everything we can to protect your job security. We will keep you updated with any new developments as they happen and, in the meantime, please contact your union representative with any questions or concerns.
President, UFCW Local 135