Latest news with #RiteAidCorporation
Miami Herald
08-05-2025
- Business
- Miami Herald
Rite Aid To Close All Stores: See Full List of Locations
Rite Aid Corporation, one of the nation's largest pharmacy chains, is preparing to close all of its remaining stores as part of ongoing bankruptcy proceedings. The closures mark the final phase in a process that began with the company filing for Chapter 11 bankruptcy protection in October 2023, amid mounting debt and hundreds of lawsuits over its alleged role in the opioid crisis. The Philadelphia-based chain has already shuttered hundreds of locations over the past year, and court filings now show plans for a complete wind-down of its retail footprint. While Rite Aid has not officially confirmed a specific end date for operations nationwide, numerous individual stores have posted closing signs, and liquidation sales are underway across multiple states. The retailer, that once operated more than 2,000 locations, has seen a dramatic reduction in footprint as the company seeks to resolve its financial obligations. Filings reviewed by the Associated Press show the final rounds of store closures are expected to be completed by mid-2025, effectively ending Rite Aid's role as a brick-and-mortar pharmacy provider in the U.S. According to the Rite Aid website, it has 1,240 stores across the U.S., a significant drop from its peak of more than 4,500 locations in the early 2000s. Here are the states with the most locations: 347 stores in California345 stores in Pennsylvania178 stores in New York95 stores in Washington60 stores in New Jersey48 stores in New Hampshire48 stores in Oregon31 stores in Virginia29 stores in Delaware23 stores in Maryland15 stores in Connecticut8 stores in Idaho5 stores in Vermont4 stores in Massachusetts4 stores in Ohio There were multiple store closures throughout 2024 and early 2025. In California alone, nearly 200 stores have been shut down or are in the process of liquidation. New York and Pennsylvania, where the company has its largest regional presence, are seeing dozens of closures as part of the final phase. Store closures are being implemented in waves, with some locations closing immediately and others expected to cease operations over the next several months. Liquidation notices began appearing at several locations as early as May 1, and employees at select sites have been informed that their stores will close by the end of May or early June. Stores in the Southern Tier of New York, including Elmira and Horseheads, are slated to close by May 15. Similar timelines have been shared by employees in Pennsylvania, Ohio, Michigan and California, though exact closure dates vary by region and lease agreements. Rite Aid has also terminated pharmacy operations in numerous locations ahead of retail closures, transferring prescription files to competitors such as CVS and Walgreens, often without direct input from patients. Customers are advised to check with local stores for specific closing timelines and to retrieve prescriptions or records before the final shutdown. Rite Aid's parent company and financial advisers reportedly determined that selling or closing all locations was the most viable strategy to maximize value for creditors. Despite efforts to sell off portions of the business to potential buyers, including rival pharmacy chains and private investors, no offers met the necessary thresholds to keep stores open. The company said that resuming Chapter 11 bankruptcy proceedings was the only viable path forward. Matt Schroeder, Chief Executive Officer of Rite Aid, said in a statement: "For more than 60 years, Rite Aid has been a proud provider of pharmacy services and products to our loyal customers. While we have continued to face financial challenges, intensified by the rapidly evolving retail and healthcare landscapes in which we operate, we are encouraged by meaningful interest from a number of potential national and regional strategic acquirors. As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible." No, Walgreens does not own Rite Aid. Although Walgreens announced plans in 2015 to acquire Rite Aid for $9 per share in a full merger, the deal fell through because of regulatory concerns. In place of the merger, the two companies reached a scaled-down agreement in which Walgreens acquired 1,932 Rite Aid stores and three distribution centers for $4.4 billion. This deal was approved by the Federal Trade Commission and finalized in March 2018. Following that, Rite Aid entered another proposed merger with supermarket chain Albertsons in 2018, which was also ultimately abandoned just before a shareholder vote because of pushback from investors. As a result, Rite Aid remained an independent company until its Chapter 11 bankruptcy filing in 2023. Rite Aid's exit from the retail pharmacy market marks the end of a legacy brand that once served millions of customers across the country. The company's prescription and health record databases are expected to be absorbed by other pharmacy chains, with Rite Aid confirming its intention to complete those transitions before final store shutdowns. In the coming weeks, bankruptcy courts will continue to oversee asset sales, including store fixtures, real estate, and pharmacy data. Creditors, including landlords, suppliers, and municipalities involved in opioid litigation, are expected to receive partial payments as assets are liquidated. Consumers who rely on Rite Aid for prescriptions, immunizations, or over-the-counter products are encouraged to transfer services to other providers as soon as possible. Customers may still contact Rite Aid's corporate website or customer service line for information about specific store closures and prescription transfers. Related Articles List of Stores Closing in MayFull List of Big Lots Stores Reopening in MayMap Shows Where Trader Joe's Opening Stores In Over A Dozen StatesSam's Club Announces Expansion Plans for US Locations 2025 NEWSWEEK DIGITAL LLC.
Newsweek
08-05-2025
- Business
- Newsweek
Rite Aid To Close All Stores: See Full List of Locations
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Rite Aid Corporation, one of the nation's largest pharmacy chains, is preparing to close all of its remaining stores as part of ongoing bankruptcy proceedings. The closures mark the final phase in a process that began with the company filing for Chapter 11 bankruptcy protection in October 2023, amid mounting debt and hundreds of lawsuits over its alleged role in the opioid crisis. The Philadelphia-based chain has already shuttered hundreds of locations over the past year, and court filings now show plans for a complete wind-down of its retail footprint. While Rite Aid has not officially confirmed a specific end date for operations nationwide, numerous individual stores have posted closing signs, and liquidation sales are underway across multiple states. The retailer, that once operated more than 2,000 locations, has seen a dramatic reduction in footprint as the company seeks to resolve its financial obligations. Filings reviewed by the Associated Press show the final rounds of store closures are expected to be completed by mid-2025, effectively ending Rite Aid's role as a brick-and-mortar pharmacy provider in the U.S. A Rite Aid Pharmacy is seen in Pittsburgh in this undated image. A Rite Aid Pharmacy is seen in Pittsburgh in this undated image. Gene J. Puskar, File/AP Photo Which States are Most Impacted by Closures? According to the Rite Aid website, it has 1,240 stores across the U.S., a significant drop from its peak of more than 4,500 locations in the early 2000s. Here are the states with the most locations: 347 stores in California 345 stores in Pennsylvania 178 stores in New York 95 stores in Washington 60 stores in New Jersey 48 stores in New Hampshire 48 stores in Oregon 31 stores in Virginia 29 stores in Delaware 23 stores in Maryland 15 stores in Connecticut 8 stores in Idaho 5 stores in Vermont 4 stores in Massachusetts 4 stores in Ohio There were multiple store closures throughout 2024 and early 2025. In California alone, nearly 200 stores have been shut down or are in the process of liquidation. New York and Pennsylvania, where the company has its largest regional presence, are seeing dozens of closures as part of the final phase. When Are Rite Aid Stores Closing? Store closures are being implemented in waves, with some locations closing immediately and others expected to cease operations over the next several months. Liquidation notices began appearing at several locations as early as May 1, and employees at select sites have been informed that their stores will close by the end of May or early June. Stores in the Southern Tier of New York, including Elmira and Horseheads, are slated to close by May 15. Similar timelines have been shared by employees in Pennsylvania, Ohio, Michigan and California, though exact closure dates vary by region and lease agreements. Rite Aid has also terminated pharmacy operations in numerous locations ahead of retail closures, transferring prescription files to competitors such as CVS and Walgreens, often without direct input from patients. Customers are advised to check with local stores for specific closing timelines and to retrieve prescriptions or records before the final shutdown. Rite Aid's parent company and financial advisers reportedly determined that selling or closing all locations was the most viable strategy to maximize value for creditors. Despite efforts to sell off portions of the business to potential buyers, including rival pharmacy chains and private investors, no offers met the necessary thresholds to keep stores open. The company said that resuming Chapter 11 bankruptcy proceedings was the only viable path forward. Matt Schroeder, Chief Executive Officer of Rite Aid, said in a statement: "For more than 60 years, Rite Aid has been a proud provider of pharmacy services and products to our loyal customers. While we have continued to face financial challenges, intensified by the rapidly evolving retail and healthcare landscapes in which we operate, we are encouraged by meaningful interest from a number of potential national and regional strategic acquirors. As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible." Does Walgreens Own Rite Aid? No, Walgreens does not own Rite Aid. Although Walgreens announced plans in 2015 to acquire Rite Aid for $9 per share in a full merger, the deal fell through because of regulatory concerns. In place of the merger, the two companies reached a scaled-down agreement in which Walgreens acquired 1,932 Rite Aid stores and three distribution centers for $4.4 billion. This deal was approved by the Federal Trade Commission and finalized in March 2018. Following that, Rite Aid entered another proposed merger with supermarket chain Albertsons in 2018, which was also ultimately abandoned just before a shareholder vote because of pushback from investors. As a result, Rite Aid remained an independent company until its Chapter 11 bankruptcy filing in 2023. What's Next Rite Aid's exit from the retail pharmacy market marks the end of a legacy brand that once served millions of customers across the country. The company's prescription and health record databases are expected to be absorbed by other pharmacy chains, with Rite Aid confirming its intention to complete those transitions before final store shutdowns. In the coming weeks, bankruptcy courts will continue to oversee asset sales, including store fixtures, real estate, and pharmacy data. Creditors, including landlords, suppliers, and municipalities involved in opioid litigation, are expected to receive partial payments as assets are liquidated. Consumers who rely on Rite Aid for prescriptions, immunizations, or over-the-counter products are encouraged to transfer services to other providers as soon as possible. Customers may still contact Rite Aid's corporate website or customer service line for information about specific store closures and prescription transfers.
Epoch Times
06-05-2025
- Business
- Epoch Times
Rite Aid Bankrupt Again, Seeks to Sell All Assets
Drugstore chain Rite Aid Corporation has again filed for bankruptcy less than a year after exiting from the previous one, with the chain now looking to sell 'substantially all of its assets,' the company said in a May 5 Rite Aid and its subsidiaries filed for Chapter 11 bankruptcy at the U.S. Bankruptcy Court for the District of New Jersey. To support Rite Aid during the sales process, the company 'has secured commitments from certain of its existing lenders to access $1.94 billion in new financing,' the statement said. 'This financing, along with cash from operations, is expected to provide sufficient funding during the sale and court-supervised process.' Assets that are not sold during the court-supervised bankruptcy process would be divested or monetized. During bankruptcy, customers will still be able to access pharmacy services and products at the company's physical stores and online. The drugstore chain 'is working to facilitate a smooth transfer of customer prescriptions to other pharmacies. Rite Aid employees assisting with this process will continue to receive pay and benefits,' the company said. Related Stories 5/5/2025 5/5/2025 Rite Aid previously In September 2024, Rite Aid However, things have not gone smoothly for the company, as evidenced by the decision to file for bankruptcy again. Matt Schroeder, Rite Aid CEO, said the company has 'continued to face financial challenges, intensified by the rapidly evolving retail and healthcare landscapes in which we operate.' Rite Aid's store count across the United States has fallen drastically over the past decade. In 2012, the company had 4,667 stores, which fell to 2,309 in 2023, according to Drug Chains Under Stress Drugstore chains have been scrambling for some time. In October, Walgreens In March, the company Neil Saunders, managing director of retail for Global Data, He said the pharmacies grew too fast and that they were now dealing with lower profits on generic drugs. Some have become inefficient, while others have tried to integrate health care solutions into their businesses. 'They tried diversifying into health care with varying degrees of success, and to rationalize the business, [they] have cut costs to reach profitability, eventually leading to store closures. There's no one simple fix here,' Saunders said. 'It's something they're going to have to work through in the next five years and will cause a problem for consumers.' The pharmacy expert suggests that closing drug stores would force many consumers to fill their drug prescriptions via mail, especially in rural areas. This, Saunders says, is more bad news for brick-and-mortar drug stores. 'Not everyone likes it, but it's cheaper for the insurance companies and a heck of a lot more convenient for the consumer. It's an essential need, and if it can be delivered right to your home, so why not?' he said. 'Once people switch and get comfortable with it, [it] will eventually undermine one of the points of differentiation for pharmacies. If consumers don't go in the stores, they aren't going to pick up impulse purchases and their business model is going to unravel.' According to a Jan. 23 It cited several factors, including capital constraints, labor shortages, an increase in costs, and a changing regulatory environment. As for 2025, Ronald Winters, a principal at Gibbins Advisors, said that 'while the new presidential administration introduces some uncertainty to the healthcare system, the core factors driving healthcare distress remain unchanged.' 'Standalone and rural providers will continue to face significant financial challenges, and collaborating with communities on effective restructuring solutions is vital to preserving essential healthcare services in those regions,' he said. Mark Gilman contributed to the report.
