Rite Aid is shutting down all its remaining New York stores following prolonged financial difficulties. The drugstore chain, which still operates 178 stores in the state, filed for bankruptcy on Monday. This marks the second time in two years that Rite Aid has sought relief from creditors. According to the company, it will pursue a strategic sale process for most of its assets and initiate voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of New Jersey. Over the coming months, all Rite Aid distribution centers will close, and the remaining New York stores will either shut down or be taken over by a new owner. The first round of layoffs is expected to begin on June 4. Rite Aid will assist customers in transferring their prescriptions to other pharmacies as closures occur. CEO Matt Schroeder expressed gratitude to employees and emphasized the company’s efforts to ensure uninterrupted pharmacy services for customers and job preservation for as many associates as possible. Rite Aid initially filed for bankruptcy in October 2023 after reporting $750 million in losses during the previous fiscal year. The company has faced numerous lawsuits related to the opioid epidemic and blames post-pandemic thefts for its ongoing financial struggles.
— new from amNewYork
