Rite Aid is closing an additional 111 stores across 12 states, according to a filing on May 30 in federal bankruptcy court in New Jersey.
This is Rite Aid's fourth notice of store closings.
The new closings are in Maryland, California, Virginia, Washington, Pennsylvania, New York, New Jersey, Vermont, New Hampshire, Connecticut, Delaware and Oregon.
The bulk of the stores are centered in New York and California. Thirty-eight are in California, and 28 are in towns and cities in New York state. Seven stores in Buffalo are being closed.
WHY THIS MATTERS
When it filed for its second bankruptcy in early May, the company, now called New Rite Aid, identified 360 stores for closure, according to The Hill.
The third additional closing notice was filed on May 23.
Once among the top three pharmacy retail chains nationwide, Rite Aid has blamed its financial troubles on the cost of more than 1,600 opioid lawsuits, a downturn in the economy, tariffs and increased costs from suppliers.
The company filed for its second bankruptcy after being unable to secure additional funding to continue operating, according to Bloomberg.
THE LARGER TREND
In May, the U.S. Bankruptcy Court of New Jersey approved a plan for Rite Aid to sell 64 of its stores to CVS Health and the prescription files of 625 Rite Aid pharmacies across 15 states.
Rite Aid said it would be embarking on a "rolling transition," selling off more than 1,000 of its stores across the U.S. to operators including CVS Pharmacy, Walgreens, Albertsons, Kroger and Giant Eagle.
Rite Aid originally filed for bankruptcy in October 2023 and received a commitment for $3.45 billion in new financing to implement a financial restructuring plan.
In September 2024, Rite Aid said it had successfully completed its financial restructuring and emerged from Chapter 11 bankruptcy, cutting about $2 billion worth of total debt and adding $2.5 billion in exit financing.
At its peak in 2008, Rite Aid operated over 5,000 stores. As of May, the company had 1,240 stores located in 15 states, down from about 2,100 when it filed its first bankruptcy, according to Drug Topics.
Email the writer: SMorse@himss.org