Will More Rite Aid Stores Close? Bankruptcy Restructuring Process Begins
Rite Aid, which recently filed for Chapter 11 bankruptcy, plans to continue to serve its retail, pharmacy and other customers as well as its online platforms during its court-supervised restructuring, the drug store chain says on its website.
Rite Aid has received court approval to close 154 stores and one of its landlords, A&G Real Estate Partners, announced plans on October 17 to sell another 99 stores. The company said that, as part of the bankruptcy process and in connection with the court-supervised process, it will "continue assessing its footprint and close additional underperforming stores.”
In a September 22 report, the Wall Street Journal cited people familiar with the matter saying that Rite Aid is proposing to close as many as 500 of its 2,100 stores as part of the restructuring plan.
The news comes at a time when the healthcare sector is undergoing rapid changes in the labor sector, in particular. Earlier this month, pharmacists, technicians and support staff at Walgreens stores in several states staged a walkout over "harsh" working conditions. Last week, Kaiser Permanente and the Coalition of Kaiser Permanente Unions jointly announced that they reached a tentative agreement for a new contract, following the coalition's three-day strike and months of negotiations.
At Rite Aid, the company said that it is "making every effort to ensure customers of impacted stores have access to health services, whether at another Rite Aid or a nearby pharmacy, and will work to transfer prescriptions accordingly so that there is no disruption of services."
Rite Aid has closed more than 2,700 stores since its store count peaked at 5,059 in 2008 following the acquisition of Brooks Eckerd. The company had 2,284 stores as of June 3, 2023, according to its Securities and Exchange Commission filings.
Opioid-related lawsuits on hold
The bankruptcy filing will pause numerous federal, state and private lawsuits against the company over its alleged oversupply of opiod drugs, according to a Wall Street Journal article on October 15.
Rite Aid said it agreed to sell its Elixir pharmacy benefits manager (PBM) business to independent PBM MedImpact Healthcare Systems, which will serve as a "stalking horse bidder" in a court-supervised sale process.
How to Double Your Money with the Best CD Rates for January 2024
If you are looking for a safe and reliable way to grow your savings, you might want to consider opening a certificate of deposit (CD) account. A CD is a type of deposit account that offers a fixed interest rate for a specified term, usually ranging from a few months to several years. Unlike a regula
How to buy the right personal financial products
Personal financial products are tools that help you manage your money, save for the future, and achieve your financial goals. They include things like bank accounts, credit cards, loans, insurance, investments, and retirement plans. However, not all personal financial products are create
What is the National Debt?
As a professional in the field of finance and economics, it is essential to have a comprehensive understanding of the national debt. The national debt refers to the total amount of money that a country owes to its creditors, which may include individuals, businesses, and other countries. In this art
How to retire in other countries? What are the best countries to retire abroad?
Retiring abroad has become an increasingly popular option for many people seeking a change of pace and a more affordable lifestyle. However, making the decision to retire in another country requires careful consideration and planning. In this article, we will explore the best countries to retire abr