Rite Aid has just announced an awful new… the closure of 47 locations in nine different states. And although there are already rumours that this could be the first step toward a total closure, the company has wanted to clarify that, for now, only these stores are confirmed. But why they took this decision? Let’s see.
What’s happening with Rite Aid?
This decision is part of the bankruptcy process that Rite Aid began last 2023 and, which is now entering in a new and more aggressive phase. The goal of these massive closures is to sell some locations, reduce losses, and hopefully save some jobs. But it looks quite complicated having in count the situation they are facing at this moment.
Pennsylvania, California, Connecticut, Massachusetts, Oregon, New Hampshire, New Jersey, New York, and Washington are the states that will suffer these closures.
What is Rite Aid?
One of the largest pharmacy chains in the country, founded in 1962, for decades it was one of the main competitors of other major chains like CVS and Walgreens. Its business model is identified by selling prescription medications but also by being a retail store for basic items.
Ok, so, when started this bankruptcy?
Back in 2023, they had to file for bankruptcy, the massive closure of 47 branches (and the consequent dismissal of many employees) is just one more step in this bankruptcy filing.
The chain insists that its goal is to sell as many locations as possible to try to keep operating those stores with better profitability to stay afloat. But.. Only time knows…
Not all Rite Aid stores will close (for now)
Rumour has it… But for now, no. We are not going to play a requiem for Rite Aid because it is still operating with its other branches, even they have come out to deny these news. For now, they are limiting to trying to keep alive the rest of the branches running while they negotiate these sales.
Are there changes now?
Yessss, they have already announced many changes that have been implemented since May 6. Among the most notable changes, they will stop issuing reward points for purchases, accumulated points and returns will disappear, if you want to know what other benefits will disappear, you can check the information on the official Rite Aid website.
And for employees and users?
They will be the first affected by the new changes, of course. It is estimated that approximately at least 500 workers will lose their jobs, which will directly affect the communities and families where those workers belong.
For users accustomed to shopping at these branches, they will have to adapt to other companies, especially in those places (mainly rural areas) where Rite Aid was one of the few available options to access pharmaceutical services.
The situation of Rite Aid is now more critical than ever. This is the second time the company has filed for bankruptcy in less than two years. During the first phase, they already closed hundreds of stores, and this new announcement seems to be just the tip of the iceberg of a more aggressive restructuring… We will have to wait to see if these changes have any effect on the company or if we will have to say goodbye to this pharmacy chain. Our recommendation can only be to check if your local store is on this closure list… And use your balance before June 5 if you don’t want to lose them!