Rite Aid set to close two locations as pharmacy shuts down 25 stores amid rumors of bankruptcy
RITE aid announced it is closing two more stores after the pharmacy brand shuttered 25 earlier this year - the brand may also be preparing for bankruptcy.
Rite Aid is bidding farewell to locations in Ridgewood, New York and Meridian, Idaho.
The pharmacy brand has already shut down over 25 locations this year.
Idaho's store abruptly closed in early August, surprising several customers.
Now, customers attempting to contact the former Rite Aid location will have their calls automatically transferred to a Walgreens representative, according to Boise Dev.
The rival chain pharmacy picked up Rite Aid's customer lists, prescriptions, and the old store's phone number.
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"Like all retail businesses, we regularly review each of our locations to ensure we are meeting the needs of our customers, communities and overall business," a Rite Aid representative told the publication.
"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."
NEW YORK, TOO
The Rite Aid in Ridgewood is also set to shutter on September 5.
The neighborhood, part of Queens, Ney York, just witnessed a Walgreens pharmacy closure in February.
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Community civic activist, Charlene Stubbs, told Queens Chronicle many residents saw their prescriptions transferred to the now-closing Rite Aid after the Walgreens closure.
Stubbs said the new location wasn't accessible for all area residents - some people need to take two transit buses to get to the store that remains open.
Stubbs is also nervous for Rite Aid's employment impact.
"They were told if there’s an opening they can still work for Rite Aid, but they can’t guarantee it," Stubbs said.
IMPENDING BANKRUPTCY?
Rite Aid executives are preparing the company to file for Chapter 11 bankruptcy, The Wall Street Journal reported.
Rite Aid forecasts it generate between "approximately $650 million and $680 million" in loses in 2024.
"We're constantly looking at performance of stores, particularly ones that don't have much lease life left on the lease and determining whether we've got an opportunity to continue to maximize the profitability and the efficiency of the fleet," Rite Aid's chief financial officer and executive vice president, Matthew Schroeder, said in a quarterly earnings call.
"I would expect us to continue to do that."
The company has around $3.3billion in debt as the stores continuously bleed money.
Rite Aid also faces thousands of lawsuits alleging it oversupplied opiate prescription painkillers.
The company has denied any wrongdoing.
If Rite Aid choses to file for bankruptcy, it could force courts to move federal lawsuits alleging it broke rules under the False Claims Act and Controlled Substances Act.
Three major opioid producers - Purdue, Mallinckrodt, and Endo - all filed for Chapter 11 bankruptcy after the companies reach individual settlement deals from thousands of lawsuits.
The settlements set the companies up to pay $8billion to opioid addiction victims and communities.
The bankruptcies could jeopardize the billions to victims, The Wall Street Journal reported.
Read More on The US Sun
The U.S. Sun reports on other Rite Aid closures - here is another shutting down in Pennsylvania.
Also, here is more on Rite Aid's potential bankruptcy.
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