MAJOR retailer and pharmacy, Rite Aid, is looking to close even more storefronts as a part of their bankruptcy filing.
The company filed for Chapter 11 bankruptcy on October 15 after months of speculation from both the public and the market.
Bankruptcy had been expected since the Wall Street Journal published a story months ago, claiming a source confirmed that Rite Aid had been considering bankruptcy.
With Chapter 11 Bankruptcy approval, the company still will maintain the ability to manipulate its assets in order to rectify debt; many other companies, including JcPenny, have done this and come back to market.
In the initial filing, Rite Aid identified 154 stores that would be closing in addition to the hundreds closed prior to the bankruptcy declaration.
Now, they have added another 24 stores to the list and are waiting for approval to do so.
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The new proposed store closings are:
- Eight in Michigan
- Four in Pennsylvania
- Three in Washington
- Three in Maryland
- Two in New Jersey
- One in California, Delaware, New York and Ohio
Judge Michael B. Kaplan of the New Jersey court system tentatively approved the first 154 stores to be closed on October 17.
With the additional 24 stores, a final decision will be given on all 178 stores on November 9 if there is no objection or November 16 if there is an objection.
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Jeffrey Stein was named the new chief executive officer and chief restructuring officer of Rite Aid to guide the company through the bankruptcy filing.
In a statement, Stein said: “Rite Aid has served customers and communities across our country for more than 60 years, and the important actions we are taking today will enable us to move ahead as a stronger company.
"With the support of our lenders, we look forward to strengthening our financial foundation, advancing our transformation initiatives and accelerating the execution of our turnaround strategy. In
doing so, we will be even better able to deliver the healthcare products and services our customers and their families rely on – now and into the future.
“We remain focused on serving our customers and communities, and we are grateful that they continue to choose our stores and pharmacies for their healthcare needs. We thank our associates for their ongoing hard work and dedication, and we extend our gratitude to our partners, suppliers and vendors for their continued support.”
Pharmageddon Fears
Rite Aid may be the only big-name retail pharmacy filing for bankruptcy, but it is not the only one shuttering doors across the nation.
CVS and Walgreens have also been closing stores citing financial trouble garnered from the COVID-19 pandemic and increases in shoplifting.
CVS announced in late 2021 that it would close roughly 300 stores per year until 2024; Walgreens also announced that around 150 locations will be closed by the end of next August.
Between closures and employee walkouts, customers are reporting issues receiving their medications.
On X, formerly known as Twitter, one Rite Aid customer said: "Waiting three days for two new medications that would help with my head/eye pain.
"@RiteAid. Hire more people. The tech said to go to pharmacy and wait (with unmasked people). Heck, no."
In an update, they said: "I called. She said they prob won't be filled today. The Rxs were submitted Friday. I don't know how they can hold a license."
Meanwhile, Walgreens has also been having issues with prescriptions.
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One customer said: "You are holding my prescription refills hostage!
"Pharmacists won’t call to transfer them back because it takes more than an hour to get through on the phone and I’ve been standing in line in person for an hour, too! #FreeOurPrescriptions #WalgreensHorribleCustService."
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