How Many Rite Aid Locations Are Closing?

Rite Aid, the pharmacy chain that filed for Chapter 11 bankruptcy in October, is set 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 has identified 154 of these locations. Rite Aid plans to close 27 more locations as it continues to work through a bankruptcy proceeding. The store locations are in Ohio, and the chain has closed more than 50 additional locations across 9 US states.

Rite Aid filed for Chapter 11 protection in October 2023 and initially shuttered 154 stores. It has since closed more than 520 locations in bankruptcy, or about a quarter of the 2,111 stores that the retailer had been operating when it sought court protection. A new court filing this week brings the number of Rite Aid locations announced for closure in 2024 to 77, the continuation of downsizing amid a bankruptcy.

The pharmacy chain has used its bankruptcy to close hundreds of stores, sell its pharmacy benefit company Elixir, and negotiate settlements with its employees. Since filing for Chapter 11 bankruptcy in October, Rite Aid has closed nearly 550 stores, including this latest closure. According to documents filed on July 12 with the US Bankruptcy Court, 30 additional stores will be shuttered, including another 13 in Ohio. A year after marking its 60th birthday, Rite Aid will shut down at least another dozen remaining Michigan sites as it struggles in bankruptcy. Liquidation sales are underway at most of the Rite Aid stores scheduled to go out of business by the end of the month, as The Anderson Pharmacy is also listed in a document filed on June 17 in the U.S. Bankruptcy Court.

Does Rite Aid have debt?

As of August 2023, the aggregate debt reflected on the balance sheet is $6. 58 billion.

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 went wrong with 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.

Will Rite Aid go under?

Following the successful conclusion of its financial restructuring and the avoidance of Chapter 11 bankruptcy, Rite Aid will transition to a private company.

Will Rite Aid survive Chapter 11?

Rite Aid has completed its financial restructuring and emerged from Chapter 11 bankruptcy, cutting $2 billion in debt and adding $2. 5 billion in exit financing. The company will now have a larger store footprint, an efficient operating model, less debt, and additional financial resources. Rite Aid will operate as a private company, with ownership transitioning to certain creditors and all existing common shares canceled.

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 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.

What is the Rite Aid scandal?

Rite Aid, founded in 1962 as Thrift D Discount Center, faced an accounting scandal in 1999 when it began restating earnings due to accounting irregularities. Six former Rite Aid senior executives were convicted of conspiracy in 2003 for accounting fraud and false filings with the SEC. The company changed its name to Rite Aid Corporation in 1968 and moved its stock to the New York Stock Exchange in 1970.

Rite Aid’s growth was marked by acquisitions like Envision Pharmaceutical Services in 2015 and two merger deals with Walgreens and Albertsons. Former Rite Aid executives admitted to overstating net income between 1997 and 2000.

Why is Rite Aid stock dropping?

Rite Aid has filed for bankruptcy, indicating its intention to close additional stores and appoint a new chief executive officer as part of a restructuring plan.