Rite Aid, a well-known pharmacy chain, has revealed plans to close additional stores across the United States. This announcement follows the recent closure of 250 Rite Aid locations.
The new round of shutdowns will affect stores in seven different states.
Rite Aid Closes Stores Amid Bankruptcy
According to The U.S Sun, Rite Aid pharmacy has closed numerous stores since last October due to financial difficulties.
The chain will close an additional sixteen stores as it navigates Chapter 11 bankruptcy. "Rite Aid regularly evaluates its store network to maintain operational efficiency and fulfill the needs of our customers, communities, and employees," the company stated.
As part of the bankruptcy proceedings, Rite Aid informed the court about the closures of these underperforming locations to reduce rental costs and improve financial health.
Court documents reveal that the closures will impact stores in Pennsylvania, California, Michigan, New Jersey, New York, Ohio, and Virginia.
Rite Aid Struggles Amidst Financial Woes
The USA Today reports that court documents from October revealed that Rite Aid has identified 154 underperforming stores for closure. Additional filings in November indicated plans to shut down another 31 stores across twelve states.
Rite Aid, one of the largest pharmacy retailers in the US, is facing significant financial difficulties. The company has accumulated $4 billion in debt and reports total liabilities of $8.6 billion against assets of $7.65 billion.
In October, Rite Aid filed for bankruptcy protection. The filing outlined plans to close underperforming stores, sell its pharmacy benefit management business Elixir, and settle numerous lawsuits related to the opioid crisis. The US government has accused Rite Aid of illegally filling opioid prescriptions, contributing to the nationwide epidemic.
In addition to federal accusations, Rite Aid faces over 1,600 lawsuits from state and local governments, hospitals, and consumers.
Despite these challenges, Rite Aid maintains its innocence and, according to Reuters, expressed hope for an "equitable" resolution to the opioid litigation through the bankruptcy process.
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Rite Aid spokesperson Catherine Carter stated in November that the stores slated for closure are underperforming. The move aims to reduce rental costs and improve the company's financial health.
Employees at the affected locations will be offered the opportunity to transfer to other stores, ensuring continued employment options within the company.
Rite Aid Announces Multiple Store Closures
Several Rite Aid stores are set to close across multiple states as the pharmacy chain continues to address its financial challenges.
In Pennsylvania, closures will include locations in Philadelphia at 4055-89 Market Street, Pottsville at 500 North Claude A. Lord Boulevard, South Whitehall Township at 1650 North Cedar Crest Boulevard, and Wayne at 237 East Lancaster Avenue.
In California, the affected stores are in Los Angeles at 11 East Avenue 26, Novato at 910 Diablo Avenue, and Orange at 1825 East Chapman Avenue. Michigan will see its Bloomfield Hills location at 42931 Woodward Avenue shuttered.
New Jersey's closures include Barnegat at 895 West Bay Avenue, Hackensack at 219 Essex Street, and Sicklerville at 2090 Erial Clementon Road. In New York, the Long Beach store at 23 East Park Avenue and the Saratoga Springs store at 155 Ballston Avenue will close.
Ohio will lose its Rite Aid stores in Canton at 114 12th Street North East and Dayton at 3875 Salem Avenue. Finally, in Virginia, the Richmond store at 1801 Hull Street is also set to close.
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