Rite Aid, a leading drugstore chain, has announced plans to close at least 154 stores as part of its bankruptcy process. The chain had 2,253 stores as of September 3, and the U.S. Bankruptcy Court in New Jersey approved additional closings at a later date. Rite Aid has announced the closure of over 200 stores since filing for Chapter 11 bankruptcy in October, but it is now preparing to shed more than 100 stores nationwide as part of its restructuring efforts.
Rite Aid is closing 27 more locations as it continues to work through a bankruptcy proceeding, according to a new court filing. The store locations are in Ohio. The company is planning to close ten additional stores, adding to the number the company has closed since filing for Chapter 11 bankruptcy in October. Rite Aid has already closed hundreds of stores since filing for Chapter 11 bankruptcy in October 2023 and beginning to restructure in September.
A new court filing this week brings the number of Rite Aid locations announced for closure in 2024 to 77, the continuation of downsizing. The latest closures are happening in Ohio (15 stores) and Michigan (12 stores), according to court documents. Rite Aid has secured $3.5 billion in financing and debt reduction agreements from lenders to keep the company afloat through its bankruptcy.
In addition to closing hundreds of stores, Rite Aid is also shutting more locations in Michigan and Ohio. All Michigan stores will close by the end of September, transferring customer prescriptions to Walgreens. A new court filing this week brings the number of Rite Aid locations announced for closure in 2024 to 77, the continuation of downsizing.
📹 The Decline of Rite Aid…What Happened?
One of America’s biggest drugstore chains has filed for bankruptcy. This video attempts to identify the reasons behind their …
Is Rite Aid going out of business in 2024 in the USA?
Rite Aid is set to close more stores in 2024 as part of its Chapter 11 bankruptcy, following a decline in its store count since October. The drugstore chain has shuttered nearly 550 locations, losing ground to rivals Walgreens and CVS. The company has been shrinking its store count for years, losing ground to rivals. Rite Aid’s closures are part of its Chapter 11 bankruptcy, and customers can opt-out at any time by visiting the Preferences page or by clicking “unsubscribe” at the bottom of the email.
Is Rite Aid being bought out?
In 2017, Walgreens announced the cancellation of its merger with Rite Aid, offering to purchase 2, 186 stores for $5. 18 billion, plus a $325 million cancellation penalty. A revised deal was made, with Walgreens purchasing 1, 932 locations for $4. 38 billion, approved by the FTC on September 19. The revised sale was completed in March 2018, leaving Rite Aid with around 2, 600 remaining stores. Three distribution centers and related inventory were transferred, and most stores were rebranded as Walgreens.
In February 2018, Albertsons announced plans to acquire the remainder of Rite Aid in a merger of equals, but the plan failed to please shareholders and was cancelled on August 8, 2018. In October 2020, Rite Aid announced the acquisition of Bartell Drugs, a Seattle-area chain, for $95 million, which faced criticism from customers due to staff turnover and computer system glitches.
Why are Rite Aid shelves so empty?
Ten months ago, Rite Aid drugstores in Pittsburgh filed for bankruptcy, precipitating a rapid decline in the number of operational stores and a dearth of inventory in those that remained open. The company’s bankruptcy process has resulted in the proliferation of empty shelves in numerous stores, thereby underscoring the necessity for a more efficacious and sustainable business model.
Is CVS going out of business in 2024 in the USA?
CVS is planning to reduce its workforce by 5, 000 and close around 900 stores between 2022 and 2024, with 600 of these locations closing last year. The closures are part of CVS’s strategy to realign its national retail footprint, reducing store and pharmacy density, and align the pharmacy format with patient needs. The company will offer equivalent positions elsewhere for affected employees. CVS’s closures are part of their strategy to ensure the pharmacy format is in suitable locations to effectively serve patients.
Did Rite Aid CEO quit?
Rite Aid, a US pharmacy chain, has filed for bankruptcy after operating over 2, 000 retail pharmacy locations and planning to close 154 stores. The company now operates around 1, 700 retail pharmacy locations. In January 2023, CEO Heyward Donigan stepped down, and the board decided to identify the next leader. Elizabeth Burr was appointed as interim CEO, and in October, Stein took over as CEO and chief restructuring officer.
Now, CEO and chief restructuring officer, Bruce Bodaken, said that Schroeder is an excellent fit for the company due to his deep understanding of the business. Rite Aid is now beginning its next phase as a transformed company, thanks to the dedication of the entire organization.
What was the downfall of Rite Aid?
Rite Aid’s bankruptcy was attributed to a confluence of factors, including substantial debt, litigation related to the opioid crisis, and a persistent challenge in maintaining competitiveness against larger and more diversified competitors such as CVS, Amazon, and Walgreens Boots Alliance.
What is the Rite Aid scandal?
The US government has filed a complaint alleging that Rite Aid knowingly dispensed at least hundreds of thousands of unlawful prescriptions for controlled substances from May 2014 to June 2019. These prescriptions included the dangerous “trinity” combination of drugs, excessive quantities of opioids, and prescriptions issued by prescribers identified as suspicious. The government claims that Rite Aid filled these prescriptions despite clear “red flags” that indicated the prescriptions were unlawful.
Rite Aid also allegedly ignored substantial evidence of its stores dispensing unlawful prescriptions and intentionally deleted internal notes about suspicious prescribers. The government alleges that Rite Aid violated the CSA and the Federal Food and Drug Administration (FDA) by knowingly dispensing unlawful prescriptions for controlled substances. The complaint names Rite Aid Corporation, Rite Aid Hdqtrs Corp., Rite Aid of Connecticut Inc., Rite Aid of Delaware Inc., Rite Aid of Maryland, Rite Aid of Michigan, Rite Aid of New Hampshire, Rite Aid of New Jersey, Rite Aid of Ohio, Rite Aid of Pennsylvania, and Rite Aid of Virginia as defendants.
The Department of Health and Human Services Office of Inspector General (HHS-OIG) is entering into a Corporate Integrity Agreement with Rite Aid, which includes a prescription drug claims review to have an Independent Review Organization determine whether prescription drugs are properly prescribed, dispensed, and billed.
Who is going out of business in 2024?
In 2024, several popular companies, including Red Lobster, iSun, LaVie Care Centers, Takeoff Technologies, rue21, Joann, Express, and KidKraft, have filed for bankruptcy. The news of Red Lobster’s bankruptcy may have sparked curiosity about other businesses’ financial health in 2024, as inflation and economic struggles have been reported. Additionally, 7 popular clothing brands that the middle class can’t afford anymore are highlighted. It’s important to note that most people don’t realize they should owe money to the IRS.
Why is Rite Aid empty?
Rite Aid, a US drugstore chain, filed for bankruptcy last year due to opioid-related lawsuits, slowing sales, and mounting debt. The company received approval from a bankruptcy court judge to restructure its business, allowing creditors to control it. Rite Aid has closed hundreds of stores to improve operations, with personal hygiene aisles nearly cleared out and household cleaning supplies scarce. The food aisles are hit or miss depending on the type of snack being sought.
Is Rite Aid losing money?
Rite Aid, a US pharmacy chain, has reported a $307 million loss between March and May 2023, and a loss of about $3 billion over the past six years. The company, which employed over 6, 100 pharmacists and operated 2, 100 retail pharmacy locations across 17 states, plans to close 154 stores nationwide. It now operates around 1, 416 stores in 16 states. Rite Aid also sold off some of its businesses, including its Elixir Solutions business, to MedImpact Healthcare Systems for $577 million in February. The company’s bankruptcy court documents indicate a significant reduction in its footprint.
What went wrong at Rite Aid?
Rite Aid, the third-largest drugstore chain in the United States, has encountered considerable difficulties as a consequence of prolonged mismanagement and misguided decision-making. The company’s decision to file for bankruptcy in October was precipitated by the accumulation of liabilities associated with lawsuits pertaining to the distribution of opioids and the prevailing challenges within the retail pharmacy sector. In an article published by The Wall Street Journal, the company’s unfortunate history was detailed, with particular emphasis placed on the significant losses incurred over an extended period of time.
📹 Several local Rite Aid stores to close after company files for bankruptcy
Rite Aid, a Philadelphia-based pharmacy company, has filed for Chapter 11 reorganization.
Those of us who have a little age behind us, think about this in your neighborhood where your parents lived, there was probably a butcher shop, a Baker and a candlestick maker. Then companies like A&P came along and essentially put those independs out of business. Then the bigger stores chains came along and put the little ones out of business and because the pharmaceutical business looks good they put drug stores in the grocery stores. Then the drug stores or pharmacies started putting food in their stores so you had a pharmacy selling food and a food store selling pharmacy items. Eventually someone’s going to survive and I’m not so sure some of these pharmacies like Rite Aid are going to continue to hang on. I can assure you the more unionized they are the less chance they have to survive.