Last year, major drugstore chains—including Walgreens and CVS—closed a significant number of stores throughout the U.S. Rite Aid also saw major closures in 2023, and now, the retailer just announced that it plans to continue downsizing and will shutter at least 45 more stores in 2024.
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Rite Aid's downfall became clear last fall. On Oct. 15, the company filed for Chapter 11 bankruptcy amid steadily declining sales and an accumulated $3.3 billion in debt, CNN reported. Rite Aid had around 2,100 U.S. stores last October, but with the bankruptcy filing, the company announced that it would be closing 154 locations.
Since then, Rite Aid stores have been continually closing across the country. But now, three new court documents from this month reveal that the company is planning to close even more stores in 2024.
The first filing from Jan. 4 showcases 15 additional Rite Aid stores set to close. This affects locations in New York, New Hampshire, Michigan, Washington, California, Pennsylvania, Massachusetts, Maryland, Idaho, and Virginia. The next document posted on Jan. 9 details 18 more closures in the following states: New York, Ohio, Pennsylvania, California, Maryland, Massachusetts, Michigan, Washington, and Oregon.
Finally, the most recent court docket from Jan. 16 has added 12 additional closures to Rite Aid's growing list. California, New York, Ohio, and Oregon will be affected once again, while Connecticut and Delaware are also both set to lose a location.
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At the time of the bankruptcy filing, Rite Aid CEO Jeffrey Stein indicated that the company was planning to "move ahead" with several transformation initiatives. "Rite Aid has served customers and communities across our country for more than 60 years," he said in an Oct. 2023 release. "We remain focused on serving our customers and communities, and we are grateful that they continue to choose our stores and pharmacies for their healthcare needs."
One of these major initiatives is centered around optimizing the company's store footprint, and the retailer has already warned that it may continue to permanently pare down its physical spaces as it works to overcome bankruptcy.
"In connection with the court-supervised process, the company will continue assessing its footprint and close additional underperforming stores," Rite Aid stated in its release. "These efforts will further reduce the company’s rent expense and are expected to strengthen its overall financial performance."
