Live After Quit

“Bidding Farewell: 150+ Rite Aid Stores Closing During Bankruptcy

With the retail industry continuing to face headwinds due to the coronavirus pandemic, pharmacy and drug store chain Rite Aid announced that it is closing more than 150 stores in an effort to improve financial performance. This closures come as part of the company’s Chapter 11 bankruptcy filing, which was made in late June. The filing allowed Rite Aid to renegotiate leases for hundreds of stores but the company has ultimately decided to close many of them rather than invest in them further. The stores slated for closure are located in 17 states, including California, Oregon, Washington, Maryland, Ohio, Pennsylvania, New Jersey, and New York. The closures will result in the loss of approximately 1,500 jobs, most of which are part-time and hourly positions. Rite Aid CEO Heyward Donigan said the closures are necessary in order to focus on the company’s core pharmacy business. “We are streamlining our operations and focusing on our most profitable stores to ensure we emerge from Chapter 11 stronger than ever,” Donigan said. Rite Aid, which has been in business for more than 60 years, has more than 2,400 locations in the United States. This marks the third major restructuring of the company since 2004, when it merged with competitor Eckerd Pharmacy. This round of closing is expected to result in $45 million of savings in the next fiscal year. Customers in the affected states are encouraged to turn to other local pharmacies for their health care needs. Rite Aid has set up a website to help manage customer transfers and provide more information about the store closures. Rite Aid’s bankruptcy process serves as a reminder that even large and established companies can be vulnerable to the effects of the ongoing pandemic. Many other industry rivals like Walgreens and CVS are also reported to be feeling the pinch and looking at ways to improve their profitability.