Massive Retailer In New York To File Bankruptcy, Close Many Store

A huge retailer in New York State is filing for bankruptcy. Many stores will be closing across New York State.

NEW YORK, NEW YORK - AUGUST 28: A Rite Aid store stands in Brooklyn on August 28, 2023 in New York City. Rite Aid, a national chain retail pharmacy and convenience store with thousands of locations across the country, is preparing to file for Chapter 11 bankruptcy as it faces increasing financial stress related to opioid lawsuits and other financial pressures. (Photo by Spencer Platt/Getty Images)

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.

NEW YORK, NEW YORK - AUGUST 28: Shelves, many bare of merchandise, stand in a Rite Aid store in Brooklyn on August 28, 2023 in New York City. Rite Aid, a national chain retail pharmacy and convenience store with thousands of locations across the country, is preparing to file for Chapter 11 bankruptcy as it faces increasing financial stress related to opioid lawsuits and other financial pressures. (Photo by Spencer Platt/Getty Images)

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

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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LOOK- These Are the 50 Biggest Retailers in America; 3 Are Based In New York State

Stacker recently put together a list of the top 50 biggest retailers in America using retail sales data from Kantar, provided by the National Retail Federation. What they did was ranked each by the dollar amount of retail sales they did in 2021. We took it a step further to see how many locations they have in New York and across the United States.

Total stores were based on figures from Scrapehero. The number of New York stores is based on information collected from a brand's website. It was easier to find that info for some and difficult for others. So be advised.