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Details are starting to surface about Rite Aid’s Chapter 11 bankruptcy filing, and it looks like the retailer plans to close 154 stores, reports Business Insider.
The number was pulled from court documents. As it stands, Pennsylvania will lose the most stores (37), followed by California (28), with many others on the East Coast. Philadelphia will lose 11 stores.
At its peak, the Philadelphia-based retailer had around 4,600 stores in 2013 before Walgreens subsequently took over 2,000 locations in a $4.38 billion deal. At that time, Walgreens wanted to fully buy out Rite Aid but was denied by U.S. regulators.
Currently there are 2,100 Rite Aid stores.
“Rite Aid regularly assesses its retail footprint to ensure we are operating efficiently while meeting the needs of our customers, communities, and associates,” Rite Aid said in a statement. “In connection with the court-supervised process, we intend to close certain underperforming stores to further reduce rent expense and strengthen overall financial performance. We also encourage you to check out: https://www.riteaidrestructuring.com/ ”
Rite Aid filed for Chapter 11 bankruptcy over the weekend, and the filing allows it to restructure its debt, which sits at $3.3 billion. Lenders have agreed to provide $3.45 billion in debt relief.
Over the last year, Rite Aid has been engulfed in opioid lawsuits. Back in March, the Department of Justice sued the retailer, accusing it of filling hundreds of thousands of prescriptions for illegal drugs including opioid between May 2014 and June 2019.
Recently, Rite Aid was also in danger of being delisted from the New York Stock Exchange as its stock price and market capitalization has plunged. The company’s stock has lost about 80% of its value since July.
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