Which Retailers Is Rite Aid Closing?

Rite Aid, a drugstore chain, has announced plans to close another 44 stores as part of its restructuring process following its bankruptcy filing in October. The chain had 2,253 stores as of September 3, and the U.S. Bankruptcy Court has identified 154 underperforming stores that Rite Aid plans to shutter after filing for Chapter 11 bankruptcy. The chain is closing 27 more locations in Ohio, including about 40 locations in Pennsylvania.

The bankruptcy filing comes as Rite Aid faces federal, state, and other lawsuits tied to allegedly filling unlawful prescriptions. At least 230 Rite Aid stores in Michigan will have closed in less than a year, according to a Bridge review of bankruptcy court documents. Rite Aid will close all Michigan stores by the end of September, transferring customer prescriptions to Walgreens.

Rite Aid has already closed hundreds of stores and is shutting more locations in Michigan and Ohio. The company announced 11 more closures in bankruptcy filings on Monday, with ten of the 11 stores in Ohio and Michigan and one location in California. The latest list includes 27 stores in Michigan and Ohio. Rite Aid pharmacies have steadily closed, including four in New Hampshire.

Rite Aid filed for Chapter 11 bankruptcy protection in October 2023, and the company has been working through its restructuring process since then.

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. In 1970, its stock moved to the New York Stock Exchange. 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.

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?

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 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.

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.

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.

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.

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.

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.

Why is Rite Aid closing all their stores in Michigan?

Rite Aid, a company facing high rent costs for underperforming stores, has closed over 200 struggling locations in recent years. The latest closure will impact over 170 stores in Michigan. A notice of additional closures was filed in June, including 27 more stores in Michigan and Ohio, five of which are in Metro Detroit. Rite Aid previously announced 19 other stores closing in the state last year and 12 additional stores.