News Summary
Rite Aid has announced the closure of all 178 of its stores across New York State following a Chapter 11 bankruptcy filing. This decision comes after significant financial losses and ongoing lawsuits related to opioid prescriptions. Employees will begin layoffs in June 2025 as the company restructures. Rite Aid is exploring a strategic sale to potential buyers while assuring customers that support will be available for transferring prescriptions during this transition.
Albany, New York – Rite Aid has announced it will close all 178 of its stores across New York State, following a recent Chapter 11 bankruptcy filing. This decision marks the second bankruptcy filing for the company in less than two years, with the first taking place in October 2023. As it stands, Rite Aid has approximately 1,240 locations remaining nationwide.
The company has faced long-standing financial difficulties that have worsened due to shifting retail and healthcare landscapes. Rite Aid reported losses of $750 million in the previous fiscal year, attributing part of these losses to increasing instances of retail theft in the post-pandemic period, as well as over 1,000 ongoing lawsuits relating to opioid prescriptions.
Employees will begin experiencing layoffs starting June 4, 2025, as part of the restructuring process that includes the closing of all distribution centers. While some locations may remain operational under new ownership, the company has yet to specify how many stores will be affected by these closures.
Rite Aid is currently pursuing a strategic sale process aimed at maximizing the value of its assets, indicating that it is open to potential buyers from both national and regional markets. CEO Matt Schroeder has expressed optimism about the interest in the company from possible purchasers. Despite the current challenges, Rite Aid remains committed to facilitating a smooth transition for customers looking to transfer their prescriptions to other pharmacies as closures take place.
Historically, Rite Aid has been a significant player in meeting healthcare needs for over six decades. However, the company has seen a drastic shrinkage in its operations, having reduced its store count from more than 4,000 locations nationwide three decades ago to around 1,400 stores as of the third quarter of 2024.
In New York City specifically, several Rite Aid stores had already been shuttered due to ongoing financial issues, illustrating the broader struggles facing the company in the region. Customers have been encouraged to reach out to their local pharmacies or to contact Rite Aid’s customer service line for guidance on transferring their prescriptions as changes roll out in the coming months.
As Rite Aid navigates its restructuring efforts, it aims to ensure minimal disruption to customers and employees alike during this challenging period. The company continues to work through a complex financial landscape with the hope of emerging stronger through these transformative efforts.
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Additional Resources
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- Wikipedia: Rite Aid
- QNS
- Google Search: Rite Aid closure New York
- CNY Central
- Encyclopedia Britannica: Rite Aid
- NJ.com
- Google News: Rite Aid Chapter 11 bankruptcy
- Long Island Business News
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