Rite Aid has closed 772 stores since October 2023, representing more than a third of the roughly 2,000 locations it operated before filing for bankruptcy.
Michigan and Ohio are the hardest hit: Shockingly, three out of four Rite Aid stores in both states are now closed.
In the past month alone, the troubled pharmacy has closed 189 stores in neighboring Midwestern states. Neighbors fear the chain is preparing to leave the area altogether.
After filing for Chapter 11 bankruptcy protection in October, Rite Aid announced it would initially close 154 underperforming stores in a dozen states. In the nine months since, it has closed another 618.
One analyst said ABC27 In September, the worst-case scenario was the closure of 700 stores, a figure that Rite Aid has now far exceeded.
The chain has faced a number of challenges.
Pharmacies in general are struggling to compete with large chains and Amazon, which launched its own online-only pharmacy in 2020.
The most recent closures came last week, when Rite Aid revealed it will gradually close 10 stores in Ohio and 20 stores in Michigan, according to court documents.
In fact, stores in Ohio and Michigan account for 43 percent of the total closures so far, even though those states aren’t even Rite Aid’s largest markets.
This has led some to worry that these two states will have some of the largest pharmaceutical deserts in the country.
A Rite Aid pharmacist told an Ohio business magazine last month that the recent spate of closures will “undoubtedly” cause massive problems for vulnerable populations who need a pharmacy near them.
“Some of Rite Aid’s locations are in areas where there aren’t a lot of competitors or other options,” he said. Crain’s business in Cleveland.
A major factor in Rite Aid’s current bankruptcy is the fact that it has been unable to settle hundreds of costly lawsuits. accusing the company of over-prescribing opioids.
But when Judge Michael Kaplan approved the company’s reorganization plan late last month, 16 of the lawsuits from 17 states over its alleged negligence in prescribing opioids were resolved.
The 22,000 people who filed opioid claims against Rite Aid will be entitled to payments of between $250 and $500. Reuters reported.
The restructuring will also reduce debt by $2 billion, financed primarily by a group of Rite Aid lenders.
It’s unclear when Rite Aid will emerge from bankruptcy, but it plans to return with about 1,300 stores in total, a far cry from when In 2008 it operated 5,059 establishments..
Neil Saunders, managing director of GlobalData, told DailyMail.com that no one should expect Rite Aid to return to where it was in 2008: the third-largest pharmacy chain in the country.
“Rite Aid hopes to get back on solid financial footing, although it will emerge from bankruptcy as a much smaller business with far fewer stores,” Saunders said.
DailyMail.com reached out to Rite Aid for comment but did not immediately receive a response.
Walgreens, the second-largest U.S. drugstore behind CVS, is grappling with its own financial problems and last month announced it would close a “significant” number of its 8,700 U.S. stores.
After filing for bankruptcy protection last October, Rite Aid announced it would initially close 154 underperforming retail locations in more than a dozen states. Over the past nine months, it has closed 618 more locations.
Three people browse the empty shelves of a Brooklyn Rite Aid in August 2023, months before it filed for bankruptcy.
A woman browses the shelves of a Rite Aid supermarket in Alhambra, California, on Oct. 18, 2023. The store was scheduled to close within days after announcing bankruptcy on Oct. 15.
Rite Aid was once the nation’s third-largest pharmacy chain, with more than 5,000 stores across the United States. After bankruptcy, that number could drop to as few as 1,300.
The widespread “retail apocalypse” that has seen brick-and-mortar stores struggle to combat rampant theft and ever-shrinking margins is certainly not limited to pharmacies.
By the end of April, US retailers had announced the closure of nearly 2,600 stores by 2024.
Walmart, the largest U.S. retailer, has closed 11 stores so far this year.
In early April, dollar store 99 Cents Only said it would close ALL 371 of its stores, while Best Buy closed ten. in March.
dollar tree is closing 1,000, Macy’s 150 – a third of its total – and pharmacy Rite Aid 77.
In recent months, there have been a number of bankruptcies that have added to store closures, including that of home goods and furniture retailer Conn’s.
National coffee and upmarket supermarket chain Foxtrot also said earlier in April that it would close all its stores with immediate effect, leaving staff and customers stunned.
Express, a mall staple, filed for bankruptcy in April and said it would close 95 Express locations along with all of its UpWest stores.
In early May, Rue21, the teen fashion chain that is a fixture in malls across the United States, also said it will close all 543 of its U.S. stores.