Massive Retailer In New York State Files Bankruptcy
A huge retailer in New York State has filed for bankruptcy. Many stores have already closed and many more may be closing across New York State.
When Was Rite Aid Founded?
As of 2021, Rite Aid employed around 50,000 people and had 2,152 stores as of 2023.
Rite Aid Corporation is an American drugstore chain based in Philadelphia, Pennsylvania. It was founded in 1962 in Scranton, Pennsylvania, by Alex Grass under the name Thrift D Discount Center. The company ranked No. 148 in the Fortune 500 list of the largest United States corporations by total revenue.
Why Is Rite Aid Closing?
Rite Aid is facing thousands of lawsuits due to the opioid epidemic. It is alleged that its pharmacy oversupplied opiate prescription painkillers, although Rite Aid denies any wrongdoing. According to the Wall Street Journal, it is filing for Chapter 11 bankruptcy.
In its Annual Report released in May, Rite Aid said,
Although we believe we have adequate sources of liquidity to meet our anticipated requirements for working capital, debt service and capital expenditures through at least the next twelve months, the costs associated with these legal proceedings are impossible to estimate with certainty, could exceed any applicable insurance coverage, and could significantly impact such liquidity.
According to The U.S. Sun, Rite Aid recently closed a location in Ridgewood, New York. It closed 25 stores earlier this year. New York locations included in the closings were:
-291 W. Ferry St. in Buffalo
-1625 Broadway St. in Buffalo
-1717 Pine Ave. in Niagara Falls
-535 Portland Ave, Rochester, NY 14621
-97th and Columbus, Manhattan NY
-583 Grandview Ave., Ridgewood, NY
-4900 Broadway, Depew, NY 14043
Rite Aid currently lists 257 locations or more than 10 percent of its total number of stores in New York State. There is no word on which remaining New York locations will close.
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Gallery Credit: Michelle Heart