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Rite Aid has announced the closure of eight stores in Pennsylvania as part of its reorganization following a Chapter 11 bankruptcy filing. The closures are among the first 47 locations the pharmaceutical giant plans to shutter across nine states, including California, Connecticut, and New York. The store on Market Street in Harrisburg was among the first to close, having shut its doors on April 15.
The company has entered Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of New Jersey, aiming to pursue a strategic sale of its assets. Rite Aid has indicated that many of its stores will remain open for only a few months, signaling a significant reduction in its operations. According to PennLive, the company is no longer purchasing goods and services from vendors amid financial challenges.
The closures come as Rite Aid seeks to negotiate with potential buyers to preserve jobs and minimize customer impact. A&G Realty Partners has been hired to market and sell Rite Aid's properties, with nearly 1,200 leases already listed for sale. Potential buyers have until May 13 to bid on pharmacy assets and until June 13 for remaining assets, though these deadlines may be extended.
Closing Stores:
- 843 Rostraver Road, Rostraver Township, Westmoreland County, Belle Vernon
- 400 W. Second St., Berwick, Columbia County
- 3773 Peters Mountain Road, Halifax Township
- 204 Market St., Harrisburg
- 23 N. Elm St., Kutztown, Berks County
- 209 Atwood St., Pittsburgh
- Pittsburgh International Airport, Pittsburgh
- 1039 Second St., Northampton Township, Bucks County, near Richboro
Fast Company reports that Rite Aid is focused on selling its most valuable assets, particularly its prescription files, to maximize value. The company is keenly aware of the risk of customer attrition during the bankruptcy process, which could further erode its business value.