No Impact on Rio Linda Location
Rite Aid has continued its trend of announcing more store closures as part of its ongoing bankruptcy proceedings. On Monday, the company disclosed in a bankruptcy filing the impending closure of 10 more stores, all of which are located in Ohio and Michigan. This latest announcement brings the total number of closures since the beginning of June to 206, with all but three occurring in these two states.
Rite Aid, originally based in East Pennsboro Township near Camp Hill, Pennsylvania, and now headquartered in Philadelphia, filed for Chapter 11 bankruptcy in October to restructure and significantly reduce its debt. Since filing, the company has announced the closure of 699 stores across various states.
U.S. Bankruptcy Judge Michael Kaplan approved Rite Aid’s bankruptcy plan in June at a court hearing in Trenton, New Jersey. The approval allows the pharmacy chain to cut $2 billion in debt and transfer control of the company to a group of its lenders. The company plans to exit bankruptcy soon, funded by $2.55 billion in financing provided by its lenders, according to Reuters.
When Rite Aid filed for bankruptcy in October, it had more than 2,100 stores. Recent filings in the retailer’s bankruptcy case reveal the planned closure of 50 store locations in Ohio and Michigan, including 33 in Michigan and 17 in Ohio. These closures are part of a broader plan, which earlier this month included documents listing over 60 other locations in these states for closure. In June, Rite Aid filed for the closure of 12 stores in Michigan and 15 in Ohio, with the Detroit Free Press reporting that the company intended to close all its stores in Michigan and most in Ohio.
Rite Aid has also filed a Worker Adjustment and Retraining Notification (WARN) notice with the Michigan Department of Technology, Management, and Budget, indicating the closure of its Waterford distribution center, resulting in 191 layoffs. The company lists 185 stores in Michigan and 141 in Ohio on its website, though it is unclear how many will remain after the closures. A spokesperson for Rite Aid was not available for comment regarding its remaining operations in these states.
At the time of its bankruptcy filing, Rite Aid had initially announced the closure of 154 stores, subsequently increasing the number to include hundreds more across the country. Currently, the Philadelphia-based retailer has 1,591 stores in operation, down from the 2,111 it had at the time of filing.
For residents of Rio Linda, California, there is no immediate impact from these closures. The local Rite Aid remains open and operational, continuing to serve the community’s pharmaceutical needs amidst the company’s broader restructuring efforts.
