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Rite Aid is closing an additional 53 stores in nine states across the United States as part of the company's bankruptcy proceedings, according to the British newspaper “Daily Mail”. Recent court filings.
Stores will be closed in California, Maryland, Massachusetts, Michigan, New Jersey, New York, Ohio, Pennsylvania and Virginia.
According to Reuters, Rite Aid received permission from a bankruptcy judge on March 28 to begin voting on a bankruptcy restructuring plan that would hand over most of the company's stock to its bondholders while leaving open the possibility of a sale.
The company declared bankruptcy in October in an attempt to address high debts. Reuters reported that the filing aims to close underperforming locations and sell “non-core business units.”
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A person leaves a Rite of Help on October 16, 2023, in the Crown Heights neighborhood of Brooklyn, New York City. (Michael M. Santiago/Getty Images/Getty Images)
The initial list of store closures was 154 stores and continued to grow throughout the bankruptcy proceedings.
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Rite Aid has denied any wrongdoing, but is still finalizing some settlements considered key to the restructuring process, including an agreement related to the Justice Department's investigation into the pharmacy's opioid sales, according to Reuters.
| tape | protection | last | It changes | % changes |
|---|---|---|---|---|
| RADCQ | Rite Aid Corp. | 0.12 | -0.01 | -7.69% |
But the company's lawyers said it was willing to seek votes from bondholders, the crucial voting class in its bankruptcy.
No other group will have a vote in Rite Aid's bankruptcy, and bondholders are scheduled to vote on April 15.
Customers inside a Rite Aid store in New York on October 16, 2023. (Ping Guan/Bloomberg via Getty Images/Getty Images)
A Rite Aid spokesperson said via email to FOX Business that the company does not provide it The media With a list of stores scheduled to close, however, “we have notified the court of certain underperforming stores that we are closing to reduce rental expenses and enhance overall financial performance.”
A woman shops inside a Rite Aid store under a DeepCam security camera in New York City on June 25, 2020. (Reuters/Lucas Jackson/Archive Photo/Reuters Photos)
The court filings did not specify a timeline for the closures, he said WJW-TV.
Rite Aid expects to seek final court approval for its restructuring on April 22. It received bankruptcy court approval to sell its pharmacy benefits company, Elixir, in January.
Rite Aid's first full-service pharmacy opened in 1962 in Scranton, Pennsylvania, according to the company's website. It now operates approximately 1,700 retail pharmacy locations in 16 states with a workforce of 45,000.
Reuters contributed to this report.
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