Rite Aid Closing Over 100 Stores This June
Rite Aid will close the doors to over a hundred stores this month.
As of early May, the pharmacy operated over 1,200 stores across the U.S., according to Newsweek. The company has filed for bankruptcy for the second time since October 2023, and continues to face obstacles in the "rapidly evolving retail and healthcare landscape," according to CEO Matt Schroeder.
According to Penn Live, store closures will occur in Pennsylvania, California, New York, and nine other states. In total, 111 stores will shut down — that number is in addition to the 361 Rite Aid closures previously announced.
Rite Aid has "entered into agreements" with companies like CVS Pharmacy, Walgreens, Albertsons, Kroger, and Giant Eagle to obtain its pharmacy assets.
In May, Reuters reported that Rite Aid entered bankruptcy with over $2 billion in debt. Their earlier filing for bankruptcy in October 2023 came after they reported $750 million in losses.
This most recent filing marks the fourth notice of store closings.
According to Healthcare Finance News, Rite Aid blames its struggles on the "cost of more than 1,600 opioid lawsuits, a downturn in the economy, tariffs, and increased costs from suppliers." Rising operating costs and competition from online retailers have also factored into these closures.
Rite Aid closure announcements come shortly after news that CVS will also be closing many stores in 2025. Over 270 CVS locations will shut down in 2025, according to Kiplinger, as "part of a multi-year restructuring effort and reflect a broader shift underway across the retail healthcare industry."
In 2021, CVS Health announced that over 300 stores would close over three years. “The company has been evaluating changes in population, consumer buying patterns and future health needs to ensure it has the right kinds of stores in the right locations for consumers and for the business."
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