Court filings say Rite Aid is shutting down an additional 27 stores in Ohio and Michigan as the company grapples with bankruptcy.
Rite Aid closed more than 520 of its store locations after filing for reorganization in October, NBC News reported Thursday. Most of the closings have occurred in Pennsylvania and nearby states, while more than 100 shut down in California.
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Rite Aid has been unable to keep up with competition from CVS, Walgreens and Target. In its initial Chapter 11 filing 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 obtained more than $100 million in financing to exit the bankruptcy proceedings, but the latest closure announcements suggest it still faces hurdles in getting official approval to do so.
Rite Aid’s decision to file for bankruptcy came in October after “suffering declining sales and legal threats over its alleged involvement in the opioid crisis,” AFP reported at the time.
In early 2023, officials with the U.S. Department of Justice filed a lawsuit against the company. The lawsuit alleged Rite Aid filled prescriptions for opiates oxycodone and fentanyl, drugs that are responsible for numerous overdose deaths yearly across the nation, the outlet said.
Rite Aid is not the only company facing financial struggles. In April, Walmart announced it was closing down every one of its health centers because it was not a sustainable business model, Breitbart News reported.
“Walmart also said it will treat the communities affected by the decision with the ‘utmost respect, compassion and support throughout the transition,’ adding that its pharmacies and vision centers will continue operations,” the article read.
In May, Target was struggling as high prices kept customers from buying, which resulted in a difficult quarter, Breitbart News reported at the time.
As inflation continues plaguing people across President Joe Biden’s America, Walgreens, Walmart, Target, Aldi, and Amazon Fresh have cut prices, per a Breitbart News article published on May 30.
