Nationwide pharmacy chain on its last legs as it announces more than 100 closures amid bankruptcy

Daily Mail​

2 days ago

Rite Aid is closing another slate of stores after filing for bankruptcy for the second time in less than two years.
The company, which operates 1,200 stores across 15 states, filed court paperwork on Friday detailing plans to permanently shutter 111 stores across the US.
California and New York will see the largest cuts, with 39 locations each on the chopping block.
Connecticut, Delaware, Maryland, New Hampshire, New Jersey, Oregon, Pennsylvania, Vermont, Virginia, and Washington State will also see service cuts from the retailer.
This is the second mass closure event Rite Aid has filed since it declared its second bankruptcy in May.
In one of its first Chapter 11 filings, the company said it was closing 361 stores across the US. That brings the total of stores closing to 472.
The quick store closures have left gaps in some communities, with residents expressing their worries on social media.
'This is going to cause a pharmacy desert in my neighborhood and prescription nightmare,' one Rite Aid customer wrote on Reddit.
Thousands of shoppers who relied on Rite Aid will likely turn to the brand's former competitors.
CVS and Walgreens recently purchased prescription files from hundreds of Rite Aid stores to help soften the blow.
'We're well-positioned to serve our existing customers and patients, as well as those who may be transitioning to us from Rite Aid,' a CVS spokesperson previously told DailyMail.com.
The brand purchased the files from 625 Rite Aid pharmacies across 15 states.
'These agreements ensure our pharmacy customers will experience a smooth transition while preserving jobs for some of our valued team members,' Matt Schroeder, Rite Aid's CEO, said in a statement about the deals.
Despite the recent purchase, America's pharmacy chain model has been under stress.
Online competitors — like upstarts Capsule, Blink Health, and even Amazon — have been eating at the brick-and-mortar giants because of their delivery methods and convenience.
Meanwhile, front-store retail sales, where customers grabbed toothpaste and Tylenol while raking in millions for pharmacies, have cooled as shoppers look for better deals.
Rite Aid's CEO, Matt Schroeder, said he is working to 'ensure our pharmacy customers will experience a smooth transition'
CVS has gone through a series of strategic store closures, including 270 closures this year.
Walgreens is also reportedly considering a $10 billion deal to sell itself to private equity firm Sycamore Partners.
But Rite Aid has been the hardest hit from these shifts.
For years, the company racked up billions of dollars of debt, forcing executives to declare its first bankruptcy in September 2023.
On top of Rite Aid's financial woes, it faced a series of lawsuits after being accused of overprescribing opioids.
After eliminating $2 billion in debt in its first restructuring in 2023, the company failed to regain financial stability during its latest round of business.
Rite Aid executives have reportedly told staffers to expect their stores to close this year.