Is Rite Aid Shutting Down Every Store?

Rite Aid, a drugstore chain, has announced plans to close 44 stores as part of its restructuring process after filing for bankruptcy last year. The closures are part of ongoing restructuring measures from Rite Aid’s bankruptcy filing. The chain had 2,253 stores as of September 3, and the U.S. Bankruptcy Court in New Jersey also approved the closures.

Rite Aid has identified additional stores targeted for closure as it looks to exit bankruptcy after winning court approval for a restructuring. The company has shut down hundreds of locations since filing for Chapter 11 bankruptcy in October 2023 and began to restructure in September. Since filing for bankruptcy in October, Rite Aid has filed documents announcing the closure of over 800 locations throughout the country.

Rite Aid is closing more locations in Michigan and Ohio, with ten of the 11 stores located in Ohio and Michigan. One location will close in California. The company has shuttered almost 550 locations since filing for bankruptcy in October 2023.

In addition to closing hundreds of stores, Rite Aid is closing all of its 186 stores in Michigan. The company filed bankruptcy in 2023 after struggling over recent issues. As part of its restructuring efforts, Rite Aid is now preparing to shed more than 100 stores nationwide.

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.

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.

Is Rite Aid going out of business in 2024 in the USA?

In consequence of the ongoing bankruptcy proceedings, Rite Aid stores in Michigan and Ohio are scheduled for closure. The most recent announcement of closures was made in August 2024.

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.

What stores are closing in 2024 in the USA?

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.

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.

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.

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 so many stores closing in usa?

US store closures have surpassed openings for the first time this year, due to a surge of bankruptcy filings by struggling retailers. A Coresight Research report shows that 4, 548 stores shutting their doors have outpaced the 4, 426 announced openings, resulting in 122 net store closings. This shift from the previous two years’ annual totals where openings edged closings is attributed to furniture and home goods seller Big Lots’ significant increase in the number of locations it plans to shut.

Why are Rite Aid shelves so empty?

The store’s shelves are not considered the most profitable in the Pittsburg area. However, customers have observed that the appearance of the shelves is a cause for concern.

What was the downfall of Rite Aid?

Rite Aid’s bankruptcy was a result of multiple factors, including debt, opioid-related lawsuits, and a struggle to compete against larger companies like CVS, Amazon, and Walgreens Boots Alliance. In 2017, after a failed merger with Walgreens, Rite Aid sold almost 50 of its stores to Walgreens for $5. 18 billion. The money raised helped reduce debt but also shrinked the chain, relying on fewer stores to compete with growth-focused competitors. As the company continued to struggle, more locations closed, making it harder for Rite Aid to compete.

The sale of the stores became a death spiral when combined with debt and legal troubles. Executives must focus on core competencies and understand their leverage and sustainable conditions when navigating troubled waters. Rite Aid missed an opportunity to reduce debt and refocus on its core business, leading to billions of dollars lost and a competitor growing even larger.