Rite Aid announces plans to close or sell all New York locations
By Heidi Sutton
The signs were already there with empty shelves that were never restocked but now it’s official. Rite Aid Pharmacy announced on May 5 that the business will be selling or closing all of its locations in the next few months, including 178 in New York, as it files for Chapter 11 proceedings for the second time in less than two years. The company currently operates 1,245 stores in 15 states, according to its website.
During this process, Rite Aid customers can continue to access pharmacy services and products in stores and online, including prescriptions and immunizations. In connection with the sale process and court-supervised proceedings, the Company is working to facilitate a smooth transfer of customer prescriptions to other pharmacies, according to the press release.
“For more than 60 years, Rite Aid has been a proud provider of pharmacy services and products to our loyal customers. 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,” said Matt Schroeder, Chief Executive Officer of Rite Aid.
“I will be forever grateful to our thousands of associates for their commitment to Rite Aid and its mission, and I thank our entire team – from store associates to corporate employees – for their dedication to our customers and our company. With their support, we have played a critical role in supporting the healthcare needs of countless Americans across the communities that we are honored to serve,” Schroeder added.
Following the announcement, Rite Aid posted on its website that starting May 6 Rite Aid Rewards points will no longer be issued for qualifying purchases. All accrued points and BonusCash will expire per standard terms & conditions available at riteaid.com/rewards/terms-and-conditions.
The website also said that Rite Aid would no longer honor Rite Aid gift cards or accept any returns or exchanges beginning June 5.
To support Rite Aid during its sale process, which it intends to conduct under section 363 of the U.S. Bankruptcy Code, the Company has secured commitments from certain of its existing lenders to access $1.94 billion in new financing. This financing, along with cash from operations, is expected to provide sufficient funding during the sale and court-supervised process. The Company intends to divest or monetize any assets that are not sold through the court-supervised process. Rite Aid has filed a number of customary motions with the Court seeking authorization to support operations, including continued payment of employee wages and benefits, according to the release.
Currently there are 12 Rite Aids in Suffolk County, including Eastport, Hampton Bays, Huntington, Kings Park, Lindenhurst, Middle Island, Mount Sinai, North Babylon, Selden, Shirley, Southampton, and West Islip. Stores will begin to close or be sold within the next few months.
For a full list of New York Rite Aid locations, click here.
