Rite Aid plans to close 53 additional stores in nine states across the U.S. as part of its bankruptcy proceedings, according to a recent court filing.
Stores will close in California, Maryland, Massachusetts, Michigan, New Jersey, New York, Ohio, Pennsylvania and Virginia.
On March 28, Rite Aid received permission from a bankruptcy judge to begin voting on a bankruptcy reorganization plan that would hand over most of the company’s stock to bondholders, leaving open the possibility of a sale, Reuters reported.
The company filed for bankruptcy in October to deal with large debts.
Reuters said the filing was aimed at closing underperforming locations and selling off “non-core business units.”
The initial closing list was 154 stores and continued to grow during the bankruptcy process.
According to Reuters, Rite Aid denies any wrongdoing but is still finalizing some settlements considered key to the turnaround process, including one related to a Justice Department investigation into the pharmacy’s opioid sales. It is said that he is currently working there.
But the company’s lawyers said they were prepared to solicit votes from bondholders, a key voting group in bankruptcy.
No other group has the right to vote on Rite Aid’s bankruptcy, and bondholders are expected to vote on Monday.
A Rite Aid spokesperson said in an email to FOX Business that the company is not providing media with a list of stores scheduled to close, but that they are closing “in order to further reduce rents and strengthen overall financial performance.” , we have notified the court of certain unprofitable stores that will be closed.” ”
Court filings do not provide a timeline for closure. According to WJW-TV.
Rite Aid plans to ask the court for final approval of the reorganization on April 22.
In January, the company received bankruptcy court approval for the sale of its pharmacy benefits company Elixir.
Rite Aid’s first full-service pharmacy opened in Scranton, Pennsylvania, in 1962, according to the company’s website.
The company currently operates approximately 1,700 retail locations in 16 states and employs 45,000 people.
