Rite Aid closing distribution center and 68 stores
Rite Aid revealed a new round of store closures as the company enters Chapter 11 bankruptcy. Shuttered locations include retailers in seven states and a distribution facility in Maryland, with more than 2,000 employees being laid off as a result.
In an updated filing with the bankruptcy court, the struggling pharmacy chain said 68 stores will be closed imminently, with the chain still operating some 1,240 retail locations in 15 states. For now, stores shutting down are limited to California, New Hampshire, New York, Oregon, Pennsylvania, Virginia and Washington.
However, a major distribution center in Maryland is also closing its doors, with 363 people losing their jobs.
Shortly after announcing last week that it was filing for bankruptcy and seeking buyers for its assets, Rite Aid closed 47 stores nationwide as part of its ongoing liquidation. It's not clear if some of those overlap with the 68 revealed in the updated filing. Regardless, most of its pharmacies are preparing to close, as the company appears to be effectively shutting down.
No buyers have come forward with plans to continue its core retail business. Whether or not some Rite Aid locations will remain pharmacies under a different name remains to be seen, as does the fate of the brand, which has been around since 1968.
Rite Aid has already closed hundreds of stores over the past couple of years, as this is its second bankruptcy filing since 2023.
Patients who rely on its pharmacies can still pick up prescriptions at most locations for now, as stores remain open and operating. However, the company said it's working with customers to transfer accounts to other nearby pharmacies, including those of competitors.
Rite Aid said the plan is to “divest or monetize any assets that are not sold through the court-supervised process” in an effort to pay outstanding debts and satisfy any conditions of Chapter 11.
The company was founded in 1962 under the name Thrift D Discount Center, with its first store located in Scranton, Pennsylvania.
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