Rite Aid closing stores, including 4 in Lehigh Valley
Rite Aid’s financial troubles have trickled down to the Lehigh Valley as the pharmacy chain shutters stores.
The Philadelphia-based chain, which is negotiating with creditors, according to The Wall Street Journal, is closing about 500 locations nationwide. It recently closed a store at 361 S. Cedar Crest Blvd., Allentown, and another is scheduled to shut down next week at 2178 Union Blvd. in Bethlehem.
Other locations on 25th Street in Palmer Township and Northampton Street in Easton closed in September. That leaves about 13 locations in the Lehigh Valley.
“Thank you for your patronage. We will miss you!” said a sign taped to the door of the Allentown store. It told customers that their prescriptions were still on file and could be picked up at any Rite Aid location — the Allentown store’s sign directed customers to the Rite Aid at 1650 N. Cedar Crest Blvd.
Rite Aid said it would work with customers to make sure they continue receiving prescriptions and other services.
“We review every neighborhood to ensure our customers will have access to health services, be it at Rite Aid or a nearby pharmacy,” the company said in a statement, “and we work to seamlessly transfer their prescriptions so there is no disruption of services. We also strive to transfer associates to other Rite Aid locations where possible.”
The Journal reported Sept. 22 that Rite Aid was negotiating with creditors about a plan that would have it file for Chapter 11 bankruptcy protection and close about a quarter of its 2,100 locations.
The report further states that the company has debts of $3.3 billion and is facing more than 1,000 lawsuits from its handling of opioid prescriptions and its effects on that epidemic.
The company also announced Oct. 4 that the New York Stock Exchange informed it that it is no longer in compliance with listing standards. Rite Aid is being given a “cure period,” the company said in a release, and will continue to be listed and traded.
“As previously disclosed, the company has been engaged in reviewing and continues to review strategic alternatives to recapitalize, refinance or otherwise optimize its capital structure, which may ultimately result in the company pursuing one or more significant corporate transactions or other remedial measures,” Rite Aid said.
In its latest earnings report, Rite Aid said it had a net loss of $306.7 million, or a $5.56 loss per share, for the first quarter of fiscal year 2024. Revenue for the quarter was $5.65 billion, compared to $6.01 billion for the same period last year.
During the earnings call, interim CEO Elizabeth Burr said the company would have to make “targeted reductions” to operating and capital expenditures for the remainder of the year.