Rite Aid has filed for its second bankruptcy this past Monday, sealing the fate of all 178 New York store locations to close in the near future. The chain previously filed for bankruptcy in 2023, resulting in the closure of its least profitable locations.
According to the Chapter 11 filing, the process will allow Rite Aid to “pursue a sale of its prescriptions, pharmacy and front-end inventory, and other assets.” Thus, customers will be able to continue using Rite Aid’s pharmacy, in-store and online services as the chain works to transfer patient prescriptions to a different pharmacy.
Under the U.S. Bankruptcy Code, Rite Aid will have access to $1.94 billion in new financing to fund the company during the sale and court-supervised process. Whatever is not sold, assets or operations, after the process will no longer be under Rite Aid ownership—though the company plans to divest or monetize whatever assets remain.
“While we have continued to face financial challenges, intensified by the rapidly evolving retail and healthcare landscapes in which we operate, we are encouraged by meaningful interest from a number of potential national and regional strategic acquirors. As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible ,” shared Rite Aid CEO Matthew Schroeder in a statement…