A MAJOR pharmacy chain has confirmed that all 178 of its locations in the same state will close for good following its second bankruptcy filing.
The troubled chain has faced a long string of financial issues, and entered Chapter 11 protection as recently as Monday.
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The US Sun recently reported on Rite Aid’s restructuring efforts, and the protection it has been forced to seek as a result.
Rite Aid‘s second bankruptcy filing has seen it announce plans to sell of locations while maintaining key services.
Customers will still be able to access things like pharmacy services and prescriptions, both in-store and online.
Rite Aid CEO Matt Schroeder said: “As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible.
It is not yet yet known exactly how many stores will close as a result of the filing on Monday.
But it has been revealed that one state in the US will be hit hard by the closures, as reported by Long Island Business News.
Rite Aid will close all 178 of its locations in New York State, including 18 on Long Island.
It is expected that this will result in mass layoffs for the company, and it is not yet known when the stores will close.
Layoffs at the New York Rite Aid stores are set to begin on June 4.
Schroeder continued on the New York news: “For more than 60 years, Rite Aid has been a proud provider of pharmacy services and products to our loyal customers.
“While we have continued to face financial challenges, intensified by the rapidly evolving retail and healthcare landscapes in which we operate, we are encouraged by meaningful interest from a number of potential national and regional strategic acquirors.
“As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible.
“I will be forever grateful to our thousands of associates for their commitment to Rite Aid and its mission, and I thank our entire team – from store associates to corporate employees – for their dedication to our customers and our company.
“With their support, we have played a critical role in supporting the healthcare needs of countless Americans across the communities that we are honored to serve.”
LONG ISLAND TROUBLE
Rite Aid has been facing trouble in the area recently, as The US Sun reported it had fallen behind on its rental agreements there for several of its properties.
This has led to its landlords speaking out against the company.
One Rite Aid tenant, MGD Investments, owns a 12,500-square-foot chain on Long Island.
The principal of MGD Investments Larry Weinberger tried to get in touch with the company when it failed to meet its April rent.
Weinberger told the outlet: “We’re very disappointed that Rite Aid is still having issues…they have been wonderful tenants in that building since we acquired it and leased it to them almost 30 years ago.
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“They have been wonderful tenants and just a few years ago they rebranded to the new colors and renovated the entire exterior and interior.
“I’m hoping they can make it, but we are currently analyzing the site for best uses should Rite Aid not make it.”
Basser Kaufman owned two Rite Aid spots before they closed down.
Basser Kaufman principal Steve Kaufman said: “When you start calling your real estate contacts [at Rite Aid] and they’re no longer there or don’t answer your calls, that’s a sign.
“It’s not a surprise. That business has changed.
“It’s been a marginal company for many, many years.”
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