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YOUNGSTOWN, Ohio - Discount drug chain Phar-Mor Corp. has selected a winning bidder that includes Pittsburgh-based Giant Eagle to purchase the bankrupt company's assets, The Associated Press reports.
Phar-Mor's remaining 73 stores will be closed as part of the roughly $141 million sale to a joint venture of Giant Eagle, CVS Corp. of Rhode Island, and investment firms Ozer Group of Boston and Hilco Merchant Resources of Chicago.
Giant Eagle and CVS will take over the prescriptions lists at the remaining stores and hire up to 80 Phar-Mor pharmacists to meet the increased demand, according to the AP.
Giant Eagle also will give preferential hiring status to hundreds of Phar-Mor's 3,500 employees, said Phar-Mor Chief Administrative Officer John Ficarro.
The investment firms will liquidate Phar-Mor's inventory. Phar-Mor will auction off its remaining store leases and use the money to pay creditors.
Phar-Mor will submit its bid selection today to federal bankruptcy Judge William Bodoh.
Phar-Mor filed for bankruptcy protection in September and has been in bankruptcy court twice since 1992. Phar-Mor has stores in eight states, mainly in Ohio, Pennsylvania, North Carolina and Virginia.