In Michigan, How Many Rite Aid Stores Are Closing?

Rite Aid, one of the nation’s largest drugstore chains, has listed 165 closed Michigan stores in court documents since declaring bankruptcy last year. This is likely a sign of the chain’s total departure from the state. The pharmacy chain has listed an additional 27 stores across Michigan and Ohio as it continues with bankruptcy proceedings. Rite Aid filed for bankruptcy in October after posting annual losses for the company. CVS has closed about 600 stores since 2022 and expects to close 300 more in 2024.

Rite Aid has more than 180 stores in Michigan. Earlier this week, filings in bankruptcy court revealed Rite Aid would close 12 additional Michigan locations and 15 other locations. As part of Rite Aid’s Chapter 11 bankruptcy, the company plans to close all 170 remaining stores in Michigan as it exits the state entirely. A Bridge review of bankruptcy court documents reveals that since October, the drugstore chain has marked 192 stores in Michigan for closing.

A Bridge review of bankruptcy court documents reveals that since October, the drugstore chain has marked 192 stores in Michigan for closing. All of Michigan’s 186 Rite Aid stores are closing in phases over the course of the next few months. All prescription records will be transferred to a nearby Walgreen store.

As the company continues a reported pullout from Michigan and most of Ohio, Rite Aid stores will continue to be closed in phases over the course of the next few months.

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.

What is the Rite Aid lawsuit against Walgreens?

A $192. 5 million settlement in a securities fraud case against Walgreens Boots Alliance, Inc. has been approved after eight years of litigation. The case, led by Rite Aid investors, alleged that Walgreens made public statements misrepresenting the increasing risks of an FTC review of the merger between Walgreens and Rite Aid, which harmed Rite Aid investors when the truth became known and Rite Aid’s stock price plummeted. The settlement is the largest securities class action recovery in the Middle District of Pennsylvania and second-largest in any Pennsylvania federal court.

The merger between Walgreens and Rite Aid was terminated in June 2017 due to FTC challenges, including Walgreens’ struggles to find a suitable buyer for Rite Aid stores. Rite Aid later filed for bankruptcy in October 2023 due to its role in the opioid epidemic.

What stores are going to shut down in 2024?

A total of 11 retail brands are projected to terminate operations at 1, 601 US locations in 2024. Family Dollar, the largest chain, has announced plans to close at least 600 stores. Additionally, Walmart and TJX are engaged in a dual strategy of store closures and openings. Individuals may access personalized feeds and opt out at any time by visiting the Preferences page or clicking “unsubscribe” at the bottom of the email.

Is Walgreens buying Rite Aid?

Walgreens Boots Alliance agreed to buy Rite-Aid for $17 billion in 2015 to expand its U. S. presence. Rite Aid’s Chapter 11 filing was unexpected as the company had a large debt burden, $1. 5 billion due in 2025, and a projected fiscal 2024 net loss of almost $700 million. The company also faced substantial opioid-related settlement claims from lawsuits accusing it of contributing to an oversupply of the drug.

Why is Walgreens closing locations?

Walgreens CEO Tim Wentworth announced that the company will close locations that are not profitable, too close to each other, or stores struggling with theft. The company uses cookies to provide better services, authenticate users, implement security measures, prevent spam and misrepresentation, and measure user usage. When users click “All accept”, they and their partners, including 240 partners that follow the IAB Transparency and Consent Framework, store information on their devices. They use precise location data and other personal data for personalized advertising, content marketing, target research, and service development.

Is Rite Aid doing bad?

Rite Aid, a retail pharmacy chain, has been closing stores since filing for bankruptcy, resulting in a drop from 2, 500 to 1, 554 stores as of early August 2024. This is nearly 1, 000 fewer than the company operated three years ago. The downsizing coincides with a broader shift in retail pharmacy, with CVS and Walgreens also reducing their store count. The company’s downsizing has had ripple effects, with GoodRx estimating that Rite Aid’s closures would reduce its profits by at least $5 million. The company has not provided a target number of locations as part of its bankruptcy plan.

How many Rite Aid stores are in New York?

A total of 181 Rite Aid stores are located within the state of New York.

Who bought out Rite Aid?

Walgreens Boots Alliance is set to acquire Rite Aid for $17. 2 billion in an all-cash transaction. Rite Aid, founded in 1962, was initially Thrift D Discount Center. The company changed its name to Rite Aid Corporation in 1968 before its IPO on the American Stock Exchange (AMEX). In 1970, its stock moved to the New York Stock Exchange (NYSE). Rite Aid has faced growth, scandals, and deals with Walgreens and Albertsons. In 2015, it acquired Envision Pharmaceutical Services for $2 billion. Former Rite Aid executives admitted to overstating net income between 1997 and 2000.

Did Walgreens buy out all Rite Aid’s?

In 2015, Walgreens attempted to buy Rite Aid for $17. 2 billion, but the deal fell through due to the Federal Trade Commission’s refusal to approve it. In June 2017, Walgreens canceled the merger and bought 42 of Rite Aid’s stores for $4. 38 billion. A recent lawsuit accuses Walgreens Boots Alliance of downplaying antitrust regulator scrutiny, with the settlement still requiring approval from a federal judge in Pennsylvania.

Is All Rite Aid’s closing in Michigan?

In consequence of its filing for bankruptcy in 2023, Rite Aid is to cease trading at all of its Michigan stores. The company encountered challenges due to litigation related to the opioid crisis and the financial burden of underperforming locations. In 2022, the company reached a settlement of up to $30 million in response to allegations that its pharmacies had contributed to an oversupply of prescription opioids. In recent years, the company has closed over 200 locations that were experiencing difficulties.

Why is Rite Aid in trouble?

Rite Aid has filed for Chapter 11 bankruptcy protection, citing a challenging environment for drug stores, a runner-up status to larger chains, and expensive legal battles for allegedly filling unlawful opioid prescriptions. The bankruptcy was not a surprise, as Rite Aid’s bigger rivals, CVS and Walgreens, are also facing similar problems, closing stores, and Amazon and big-box chains like Walmart, Target, and Costco offering more customer-friendly alternatives. However, Rite Aid is in worse financial shape than its competitors and is unable to weather the industry’s downturn.