Rite Aid to Close 27 US Outlets as Drugstore Chain Faces Federal Bankruptcy

By

Rite Aid
A Rite-Aid is seen on October 16, 2023 in the Crown Heights neighborhood of the Brooklyn borough of New York City. Michael M. Santiago/Getty Images

According to court records filed this week in the company's federal bankruptcy case, Rite Aid plans to shutter more than 20 outlets in the United States.

Store Closures

In a "notice of additional closing stores" submitted on Monday, June 17, to the US Bankruptcy Court of the District of New Jersey, the Pennsylvania-based drugstore chain detailed 27 more sites in Ohio and Michigan that are now on the brink of closure.

At least 12 of them are located in Michigan, while 13 more are in Ohio, as stated in the document seen by Fox Business.

The Rite Aid website boasts that the company has more than 1,700 sites across 16 states.

Chapter 11 Bankruptcy

Rite Aid had already shuttered several stores nationwide as it navigates Chapter 11 bankruptcy.

Midway through October 2023, it has been undergoing bankruptcy procedures. It declared its intention to enter Chapter 11 bankruptcy as a reorganization strategy to lower its debt drastically, enhance its financial flexibility, and permit the execution of critical projects.

Rite Aid CEO Jeffrey Stein said at the time that the ongoing process supervised by the court will center on optimizing its store footprint efficiently and orderly.

Tags
Bankruptcy

© 2024 VCPOST.com All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics