Rite Aid has filed for Chapter 11 bankruptcy protection and is putting its brick-and-mortar operations in Philadelphia up for sale as part of the restructuring process. To address over $2 billion in debt, the company secured $1.94 billion in new financing. There’s a possibility that Rite Aid will sell itself entirely, as it is currently in discussions with multiple potential buyers.
Previously, Rite Aid closed dozens of stores in the region following a bankruptcy filing in October 2023. Emerging from that restructuring in September 2024, the company is now closing the remaining 33 locations across Philadelphia, along with numerous others nationwide. Most of these locations are leased, with only a few owned outright.
The sale includes its Navy Yard collaboration center and headquarters, which spans 23,144 square feet, with a lease originally set to run until 2032. Lease costs for the Navy Yard property are $32 per square foot, according to marketing data. Most real estate leases in Philadelphia range between $10 to $30 per square foot.
If Rite Aid is sold to a buyer, the shuttered pharmacies may reopen under the new ownership. The company has not disclosed how many employees will lose their jobs due to the restructuring. For the next few months, Rite Aid plans to continue offering pharmacy services before closing the stores permanently.
CEO Matt Schroeder stated, “Since emerging from our financial restructuring process in September, Rite Aid has continued to face financial challenges. These challenges have intensified due to the evolving retail and healthcare landscapes. Our priorities are ensuring uninterrupted pharmacy services for customers and preserving jobs for as many associates as possible.”
Community leaders will need to address how to repurpose the soon-to-be vacant retail spaces, often located at busy intersections.
— new from WHYY