Rite Aid has made a decision on its stores after filing for Chapter 11 bankruptcy for the second time on Monday.
In a letter to customers, the nationwide drugstore chain said it is keeping a majority of stores open over the next several months as it goes through bankruptcy proceedings. Stores won't remain open for much longer though, and Rite Aid said in a separate letter to vendors that it “has generally stopped purchasing goods and services.”
“The majority of our stores will remain open and operating for the next few months where you can continue to access pharmacy services and products in stores and online, including prescriptions and immunizations,” Rite Aid said.
The Philadelphia-based chain, which was founded in 1962, originally filed for bankruptcy in October 2023 and emerged in September 2024 as a private company after slashing more than $2 billion in debt and securing over $2.5 billion in funding to keep going.
According to CNN, Rite Aid has locked in $2 billion in funding this time around to move forward during the bankruptcy process.
“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,” said Rite AID CEO Matt Schroeder in a statement. “As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible.”
Rite Aid currently has around 1,250 locations open around the United States, putting it a distant third behind nationwide pharmacy chains Walgreens and CVS and the seventh-largest pharmacy overall.
Neil Saunders, the managing director of data analytics firm GlobalData, told CNN the most likely outcome for Rite Aid would be other pharmacy and retail chains "cherry picking" Rite Aid locations around the country to buy.
from Men's Journal https://ift.tt/XrDibsf
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