Rite Aid plans to close 27 more stores in Ohio and Michigan as it moves through bankruptcy, according to court documents.
Rite Aid closed more than 520 stores after filing for reorganization in October, NBC News reported. report Most of the closures occurred in Pennsylvania and neighboring states, with more than 100 stores closing in California.
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Rite Aid has struggled to keep up with competition from CVS, Walgreens and Target. When it first filed for Chapter 11 bankruptcy last fall, Rite Aid CEO Jeffrey Stein said the chain was “burdened by unprofitable stores.” Bankruptcy proceedings often allow companies to exit leases cheaply.
Rite Aid has raised more than $100 million to emerge from bankruptcy proceedings, but its latest closure announcement suggests it still faces challenges in winning formal approval.
Rite Aid’s decision to file for bankruptcy came in October after it “struggled with declining sales and legal threats over its alleged involvement in the opioid crisis,” AFP reported at the time.
Officials from the U.S. Department of Justice filed a lawsuit against the company in early 2023. The lawsuit alleges that Rite Aid filled prescriptions for the opioids oxycodone and fentanyl, which are responsible for numerous overdose deaths each year across the country.
Rite Aid isn’t the only chain facing financial difficulties: Walmart announced in April that it would close all of its wellness centers, citing it wasn’t a sustainable business model, Breitbart News reported.
“Walmart also said it would treat communities affected by this decision with the utmost respect, compassion and support during this transition, adding that its pharmacies and vision screening centers would remain open,” the article read.
In May, Target suffered a tough quarter as rising prices prompted customers to cut back on purchases, Breitbart News reported at the time.
As inflation continues to bite people across President Joe Biden’s America, Walgreens, Walmart, Target, Aldi and AmazonFresh have all cut prices, according to a Breitbart News article published on May 30.
