Recently, the American chain drugstore Rite Aid announced that it will close all remaining stores in the state of New York. The retail pharmacy brand with over sixty years of history filed for bankruptcy protection for the second time this week and will begin the process of selling assets to address the financial challenges accumulated over the years.
Currently, Rite Aid still operates 178 stores in New York State, but as the company initiates bankruptcy protection proceedings in New Jersey, these stores will gradually close or be taken over by other owners in the coming months. Additionally, its nationwide distribution center will also be closed.
CEO of Rite Aid, Matt Schroeder, stated, “Despite the challenges posed by the rapidly changing financial and medical retail markets, we have attracted interest from several potential acquirers. Our top priority is to ensure customers receive uninterrupted pharmacy services while retaining employee positions as much as possible.”
The company announced that the first round of layoffs will begin on June 4th, and Rite Aid will assist customers in transferring prescriptions to other pharmacies.
This marks Rite Aid’s second filing for bankruptcy protection after its initial filing in October 2023. At that time, the company reported a loss of $750 million in the previous fiscal year and closed four stores in New York City. Subsequent financial issues continued to deteriorate, leading to more store closures.
In recent years, Rite Aid has faced multiple pressures, with its performance affected not only by the pandemic but also facing allegations of failing to fulfill regulatory responsibilities in the opioid crisis, resulting in over a thousand lawsuits. Additionally, the company’s management has considered the increase in theft cases in recent years as one of the sources of financial pressure.