Are Rite Aid stores closing? What about your prescriptions? Details on bankruptcy filing
Rite Aid announced on Monday, May 5 that it had begun Chapter 11 bankruptcy proceedings.
The company, which currently operates 1,240 stores across 15 states, will begin a process of selling and closing its locations. Meanwhile, customers will be able to access pharmacy services and that it is "working to facilitate a smooth transfer of customer prescriptions to other pharmacies," the company said in a news release.
"As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible," Rite Aid CEO Matt Schroeder said.
Schroeder pointed to financial challenges that "intensified by the rapidly evolving retail and healthcare landscapes" for the filing in U.S. Bankruptcy Court for the District of New Jersey.
Here's what we know about whether Rite Aid locations will close and what will happen to prescriptions.
Are Rite Aid stores closing?
The company is now looking to sell all or a portion of its stores to a buyer and will begin plans to "initiate store closing sales" ahead of eventually closing all stores it hasn't sold, according to its bankruptcy filing.
The company announced that it has acquired $1.94 billion in new financing to keep stores operational during the bankruptcy proceedings and potential sale.
"During this process, Rite Aid customers can continue to access pharmacy services and products in stores and online, including prescriptions and immunizations," the company said in a news release.
The filing marks the second time in less than two years Rite Aid has filed for bankruptcy after a previous restructuring reducing the company's debt.
Reuters reports Rite Aid operated about 2,000 pharmacies in 2023 but now has 1,240 stores across the country, with recent closures impacting locations in Ohio and Michigan.
Paste BN has reached out to Rite Aid for more information surrounding store closures in the wake of the bankruptcy announcement.
What will happen to Rite Aid prescriptions?
Rite Aid said it is working to transfer customer prescriptions to other pharmacies.
Customers can use the Rite Aid store locator tool to find contact information for their local store.
Will Rite Aid employees get laid off?
Employees will continue to receive pay though Bloomberg News reported earlier Monday that the company will cut jobs after failing to secure additional financing from its lenders, citing an internal letter from Schroeder.
Schroeder said that the company has received "meaningful interest from a number of potential national and regional strategic acquirors."
Gabe Hauari is a national trending news reporter at Paste BN. You can follow him on X @GabeHauari or email him at Gdhauari@gannett.com.