Rite Aid Corp., which recently filed for Chapter 11 bankruptcy, plans to shutter 154 stores as part of its financial restructuring effort.
The closures will occur in 15 states across the nation as part of the voluntary bankruptcy process. However, Pennsylvania, California and New York will get hit the hardest with 39, 32 and 20 closures, respectively, according to court documents filed in bankruptcy court.
The company — the third-largest pharmacy chain in the U.S. — was already closing stores long before officially seeking protection in bankruptcy court on Sunday. In the year ending on Sept. 30, the company closed approximately 210 stores, leaving it with a total of 2,100 operating stores.
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On the same day the company officially filed for protection, it simultaneously appointed a new leadership team as it tries to resolve lawsuits alleging that the company helped fuel the opioid crisis. Its rivals are also facing similar accusations over their part in the epidemic.
Rite Aid said it initiated the voluntary court-supervised bankruptcy process with goals of reducing its debt load, increasing financial flexibility and executing “on key initiatives.” This includes the potential sale of Elixir Solutions, an acceleration in determining the best path forward for some of its stores and the resolve of legal disputes in “an equitable manner.”
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The company appointed Jeffrey Stein to lead the company as it seeks to make a comeback from several years of declining sales and legal issues.
According to The Associated Press, Rite Aid settled several suits related to the opioid crisis. One of them was with the state of West Virginia last year.
Aside from its financial and legal troubles, Rite Aid is facing steep competition from other heavy hitters in the space that are ramping up investments with healthcare offerings.
For instance, Walmart plans to open 28 new Health center locations next year. This move will help expand the company’s healthcare footprint into Missouri and Arizona for the first time,
By the end of the 2024, there will be over 75 Walmart Health centers across the U.S.
Walgreens has also been trying to further its footprint in health care. It recently brought in Ginger Graham, current lead independent director of Walgreens Boots Alliance, to serve as its interim CEO while the company conducts a search for Roz Brewer’s permanent replacement.
Graham has held leadership positions across the health care industry for nearly three decades, including serving as the former CEO of Amylin Pharmaceuticals. Prior to this transition, Brewer helped the company’s growth into health care, including overseeing three strategic acquisitions to expand and accelerate its consumer-centric health care offerings, Walgreens said.
California: 32
Connecticut: 1
Delaware: 2
Idaho: 2
Massachusetts: 1
Michigan: 18
Maryland: 6
New York: 20
New Jersey: 12
New Hampshire: 1
Ohio: 6
Oregon: 1
Pennsylvania: 39
Virginia: 2
Washington: 11
FOX Business’ Elizabeth Pritchett contributed to this report.
Original article source: Rite Aid closing 154 stores in 15 states: Here’s the list
Source: finance.yahoo.com