Rite Aid to Close Hundreds of Stores; Is Your New Jersey or Pennsylvania Store On the List?
One of the nation's largest retail pharmacy chains could be gearing up to file for bankruptcy, and as part of that decision, it's likely they'll close hundreds of stores nationwide, reports say.
Rite Aid Plans to Close Up to 500 Stores
One of the nation's largest retail pharmacy chains is expected to close hundreds of stores across the country very soon.
Reports from multiple outlets — including Philadelphia's 6 ABC — say that Rite Aid is preparing to close up to 25% of its retail stores nationwide. That would equate to as many as 400 to 500 locations, the reports say.
The reason for the closures?
Rite Aid Is Likely Preparing to File for Bankruptcy
The Philadelphia-based retail pharmacy chain is reportedly preparing to file for Chapter 11 bankruptcy protection.
The first rumors of bankruptcy for the chain swirled back in August when it was reported by the Wall Street Journal and Bloomberg.
The company is facing more than $3 billion in debt.
They are also hoping to address the lawsuits that allege the company filled hundreds of thousands of opioid prescriptions unlawfully, The Wall Street Journal reports.
Which Rite Aid Stores Are Closing in Pennsylvania and New Jersey?
The exact plans for which stores will close have yet to be determined.
BUT! We may know a little more below.
We can tell you that the company's initial bankruptcy plans call for them to close about 400 to 500 of their retailers nationwide. That would mean those stores would "either be sold" or "allow creditors to take control."
Some of the company's bondholders, however, may be asking for the company to close even more stores, The Wall Street Journal reports.
Negotiations on the specific nature continued between the company's stakeholders, they say.
Rite Aid Closes Bristol, PA (Bucks County) Store in September 2023
Earlier this month we told you that Rite Aid was likely closing several stores in our area.
The first Rite Aid closure in Southeastern Pennsylvania that we learned about was in Bristol, Pa.
It was back on September 5 when Rite Aid employees confirmed that the store on Commerce Circle would be shuttering its doors on September 17.
94.5 PST was able to confirm that with a Rite Aid spokesperson. The company said the decision was a "strategic one."
"A decision to close a store is one we take very seriously and is based on a variety of factors including business strategy, lease and rent considerations, local business conditions and viability, and store performance," the Philadelphia-based retailer told us at the time in a statement.
Rite Aid Was Already Quietly Closing Stores Nationwide in 2023
While today's news is likely the sign of the largest scale of closings to date, it is not the first time this year we've seen the company preparing to close stores.
In fact, in the company's Q1 earnings call for 2023, the company acknowledged that it had already closed 25 stores this year. They warned they may close more stores in the near future.
Rite Aid Closes Stores Across Pennsylvania and New Jersey
We heard of even more stores closing in our area. In Philadelphia, we know that Rite Aid has closed a store at 23rd and Walnut and another at 19th and Arch Street.
Additionally, we heard of at least one store in Toms River, NJ closing. That store was located on Route 37 East in Toms River.
We'll see what's next for the retail chain.