P. M. BRIEFING : Reliable to Buy 221 Revco Stores

Revco D.S. Inc. announced today that it has agreed to sell 221 drugstores in eight states to Reliable Holdings Corp. of Ft. Worth, Tex.

The sale covers Revco stores in western Tennessee and all stores in Illinois, Iowa, Indiana, Kansas, Kentucky, Michigan and Missouri. The purchase price was not disclosed.

Revco, at one time the nation’s largest drugstore chain with about 1,900 stores in 27 states, has been operating under Chapter 11 bankruptcy protection since July, 1988, so the deal must be approved by a federal bankruptcy judge.

Reliable Holdings is a partnership formed by Acadia Partners LP of Ft. Worth and Reliable Drug Stores Inc., a 112-store chain headquartered in Indianapolis.

Today’s announcement was the first major step in Revco’s reorganization plan, announced Jan. 26, to sell 712 of its stores in 17 states.