Latest news with #RiteAid
Daily Mail
21 hours ago
- Business
- Daily Mail
Beloved retail giant closing even more locations after filing for bankruptcy
Rite Aid is getting ready to shutter even more stores than originally planned. The 63-year-old pharmaceutical chain is preparing to close another 17 locations in six states this year. Each was named in Rite Aid's 12th notice of additional store closings, which they filed on July 18 in New Jersey. Washington state has the highest number of closures on the notice at 10, while New York and Oregon both have two. Maryland, New Hampshire and Ohio each have one. With these locations, Rite Aid will have closed around 1,219 stores since its second bankruptcy filing. It recently marked its 1000th shutter milestone, and 26 stores will begin operating under different retailer names tomorrow, according to the chain's closure and transfer list. As of now, there are only 708 stores operating across 15 states, a number which is expected to shrink later this year. It's also become a major threat to Thrifty Ice Cream, a popular ice cream chain on the West Coast that operates in 500 Rite Aids that are slated to close. Rite Aid quickly became one of the nation's most popular pharmaceutical chains after opening its first store in Pennsylvania in 1962. At its peak in 2008, the chain was operating over 5,000 locations, making it the third-largest pharmacy in the US. The chain had been struggling for quite some time before it was forced to file for bankruptcy in 2023. By that time, the chain was operating 2,100 stores, and planning to close hundreds after receiving $3.45 billion in new financing to create a restructuring plan. The plan was initially successful after slashing $2 billion in debt and securing $2.5 billion in exit financing. However, its restructuring efforts slowly crumbled, and by April of this year, Rite Aid was plotting its second bankruptcy. The company has initiated multiple mass closures since its most recent filing, and is on the brink of disappearing for good. Other retailers like Walgreens and CVS have been snapping up Rite Aid locations and pharmacies, but they too have been facing financial crisis. CVS got away with the most Rite Aid pharmacies after acquiring 625 across 15 states, along with 64 stores in Idaho, Oregon and Washington. However, it's also planning to shutter 270 of over 9,000 locations across the US this year as part of a years-long strategy to right-size the number of pharmacy locations. All 23 CVS locations in Arkansas are also at risk of closing following a new law, which bans Pharmacy Benefit Managers (PBMs) from owning or operating pharmacies. The law, which will take effect in 2026, is similar to a House Bill that passed in Louisiana, which could potentially force CVS out of the state. The retailer sent a massive warning via text to customers, who were confused and panicked about the situation. Walgreens also snapped up some Rite Aid locations before finalizing a nearly $10 billion acquisition deal with Sycamore Partners. Because of this deal, the company will go private before the end of the year. Other chains that scooped up Rite Aid's pharmacy services include Albertsons and Kroger.
Miami Herald
2 days ago
- Business
- Miami Herald
Popular bankrupt home goods chain cancels store closings
The retail sector has suffered through economic distress over the last three years as a combination of financial issues derailed many retailers' business plans. Rising inflation has driven up costs of everything from employee salaries to products on retailers' shelves. Over the last three years, increased interest rates have spiked the costs of retail companies' debt obligations. Don't miss the move: Subscribe to TheStreet's free daily newsletter Retail chains also face lease obligations that may no longer make economic sense as consumers continue to shift their buying habits from brick-and-mortar shopping to online purchases. Related: Bankrupt popular drugstore chain closes last remaining stores National drugstore chain Rite Aid, which filed for Chapter 11 bankruptcy a second time on May 5, 2025, is entering the final months of its existence, as each week, the bankrupt retailer files store closing notices with the bankruptcy court, designating locations for closure. Several other iconic retail chains have also filed for bankruptcy over the last two years, closing hundreds of stores and, in some cases, going out of business, including Forever 21, Joann, Big Lots, and Party City. Popular bankrupt home goods retail chain At Home Group Inc. filed for Chapter 11 protection on June 16, with a restructuring support agreement that will eliminate $1.62 billion in debt and hand ownership to its prepetition lenders. The home decor retailer filed its petition listing $1 billion to $10 billion in assets and liabilities, which include $1.998 billion in noteholder debt, consisting of $1.94 billion in secured note debt and $58 million in senior unsecured notes. The debtor's largest unsecured creditors include US Bank NA, owed $58 million; Brentwood Originals, owed about $5.8 million; and Yotrio Corp, owed $3.8 million. At Home faced financial and operational headwinds in recent years that included increased freight rates driven by rising inflation, softening demand in the home decor market, and a consumer shift away from brick-and-mortar shopping with an increased focus on online purchases, according to a declaration from Chief Financial Officer Jeremy Aguilar. The company, founded in 1979 as Garden Ridge Pottery, began out-of-court restructuring efforts in early 2025 at a time when tariffs began rising for its many foreign suppliers. After considering strategic alternatives, the company negotiated a restructuring support agreement with its prepetition lenders before filing for bankruptcy and seeking a $600 million debtor-in-possession financing transaction, which includes $200 million in new money. Under its plan, the company said it would close 26 underperforming store locations across the country as part of its reorganization. And now, At Home has cancelled plans to close two store locations that were originally on its list of 26 initial closing stores when it filed for Chapter 11 bankruptcy. Related: National fashion retailer files Chapter 11 bankruptcy, still open (for now) At Home filed a notice of removal of closing stores from the store closing list on July 15, declaring that it was removing its stores in Princeton, N.J., and Wauwatosa, Wis., from the list and ceasing store closing sales at those locations. More bankruptcy Major iconic food brand files for Chapter 11 bankruptcyPopular Dairy Queen rival franchisee files Chapter 11 bankruptcyPopular vision care chain files for Chapter 11 bankruptcy The debtor did not indicate reasons for cancelling the store-closing sales. The home goods retailer had included the stores on its list of 26 stores to close, or 10% of its 260 locations in 40 states, during its bankruptcy case. The retailer had already closed six stores in the 12 months preceding its bankruptcy filing, according to the debtor's motion to conduct store closing sales. The company employed about 7,170 employees when it filed for bankruptcy protection. The 24 stores designated for closing in its bankruptcy are located in California (8), Illinois (2), Massachusetts (2), New Jersey, (2), New York (2), Virginia (2), Washington (2), Florida (1), Minnesota (1), Montana (1), and Pennsylvania (1). The company expects to complete the store closings by Sept. 30, 2025. Related: Home Depot rival files Chapter 11 bankruptcy in distress The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
2 days ago
- Business
- Miami Herald
Bankrupt giant retail chain closes even more store locations
The retail sector has suffered from the liquidation of several iconic retail chains over the last two years as a series of economic challenges forced them to file for bankruptcy and close down their businesses. Inflation caused labor and product costs to rise over the last three years, and some retailers faced lease rates that were no longer sustainable. In addition to higher costs, retail chains battled other economic challenges, such as increased interest rates on debt and retail theft. Don't miss the move: Subscribe to TheStreet's free daily newsletter Huge party supply retailer Party City filed for Chapter 11 bankruptcy for the second time in two years on Dec. 21, 2024, seeking to wind down over 700 store locations in 2025. Related: Bankrupt giant retail chain closes its remaining locations Party City has not completely disappeared from the retail landscape yet, as 26 locally owned franchise stores still operate, according to the company's website. Big Lots filed for Chapter 11 protection on Sept. 9, 2024, seeking to sell its assets to Nexus Capital Management for a $760 million bid, but the deal collapsed by December 2024, prompting the home goods chain to liquidate all 1,392 of its stores. Big Lots agreed to a sale to Gordon Brothers Retail Partners on Dec. 27, 2024, that allowed the transfer of stores, distribution centers, and intellectual property to other retailers and companies, including a sale of up to 400 stores to Variety Wholesalers, which planned to reopen stores. Two other major retail chains filed for bankruptcy in 2025 to liquidate their assets and shut down, as fabric and crafts retailer Joann filed for Chapter 11 bankruptcy liquidation on Jan. 15, 2025, and teen apparel chain Forever 21, which struggled financially for years, filed for Chapter 11 for the second time in six years on March 16, 2025, to wind down and close over 350 stores. Image source: Elconin/Bloomberg via Getty Images Pharmacy chain Rite Aid filed for Chapter 11 bankruptcy for the first time on Oct. 15, 2023, and closed about 800 of its 2,100 stores in a reorganization. Related: Distressed haircare brand dealt major blow in filing bankruptcy The drugstore chain's surviving entity, New Rite Aid LLC, filed for Chapter 11 protection a second time on May 5, 2025, and began closing all of its stores, consisting of about 1,240 locations. More bankruptcy Major iconic food brand files for Chapter 11 bankruptcyPopular Dairy Queen rival franchisee files Chapter 11 bankruptcyPopular vision care chain files for Chapter 11 bankruptcy Rite Aid filed its 12th notice of additional store closing locations with the U.S. Bankruptcy Court for the District of New Jersey on July 18, seeking approval to close 17 remaining stores and liquidate their assets, which adds to previously designated locations for closing, for a total of 1,219 stores. The drugstore retailer has about 21 remaining locations and may file one or more additional store closing locations notices in the next few weeks before completely winding down operations. The debtor already filed its final location closing order on July 10. Rite Aid's 12th additional closing notice consists of store closures in six states, including Washington (10), New York (2), Oregon (2), Maryland (1), New Hampshire (1), and Ohio (1). Rite Aid already filed 12 notices of store closing locations with the original notice and an additional closing notice on May 9, followed by a second additional closing notice on May 15, a third additional notice on May 23, a fourth additional notice on May 30, fifth and sixth additional notices on June 6, a seventh additional notice on June 13, an eighth additional notice on June 20, a ninth additional notice on June 27, a 10th additional notice on July 3, and an 11th notice on July 11. The first 12 groups of store closings listed 1,202 locations in 15 states, including Pennsylvania (351), California (347), New York (173), Washington (81), New Jersey (61), New Hampshire (46), Oregon (33), Delaware (29), Virginia (25), Maryland (22), Connecticut (15), Idaho (7), Vermont (5), Massachusetts (4), and Ohio (3). Related: National fashion retailer files Chapter 11 bankruptcy, still open (for now) The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Newsweek
7 days ago
- Health
- Newsweek
80% of US Counties Contain 'Health Care Deserts': Report
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. A growing number of Americans find themselves living in "health care deserts," areas lacking in the specific infrastructure and services needed to ensure timely access to medicine and care, new data suggests. According to new research from health care and prescription price-comparison website GoodRx, 81 percent of U.S. counties—home to more than 120 million Americans—fall under this definition in some way. This includes those which lack proper access to either pharmacies, primary care, hospital beds, trauma centers or community health centers. Why It Matters As a result of large-scale drugstore closures this year, 2025 has already been marked by a rise in so-called "pharmacy deserts," with more Americans having to travel further from where they live to access essential medications. The broader term used by GoodRx denotes a more pervasive issue, one which it says threatens not only the availability of medicine but also vital services needed in times of emergency. Covenant Children's Hospital on February 28, 205 in Lubbock, Texas. Covenant Children's Hospital on February 28, 205 in Lubbock, issues with physically accessing health care are in addition to those associated with cost, as health care continues to prove prohibitively expensive for a significant number of Americans. What To Know According to the GoodRx data, as well as the 81 percent of counties experiencing a health care desert of some kind, a majority of people in 60 percent of counties lack adequate access to more than one form of critical health service. Certain states, the research suggests, are more exposed to these issues, with 87 percent of those in Wyoming, 74 percent of those in Vermont and 70 percent of Montanans living in a health care desert county. Amanda Nguyen, Senior Health Economist at GoodRx, told Newsweek the prevalence of health care deserts was driven "by structural gaps and shifting policies." Nguyen said certain areas had lost their federal shortage designations—which agencies use to help direct federal funding and other forms of assistance—despite the fact that health care access has not improved. She added that health care deserts were particularly common in rural and lower-income communities with high uninsured rates. This, she said, "creates a negative cycle—as more people struggle to pay for care, hospitals and pharmacies are more likely to close, further eroding access." A woman browses through what items remain on empty shelves at a Rite Aid store in Alhambra, California, on October 18, 2023. A woman browses through what items remain on empty shelves at a Rite Aid store in Alhambra, California, on October 18, 2023. Frederic J. Brown/AFP via Getty Images Since its previous research into the topic, GoodRx said pharmacy deserts had seen the largest increase, with 48 million people now living in such areas, up from 41 million in 2021. In the U.S. today, 45 percent of counties can be classified as pharmacy deserts, GoodRx added, noting this was especially concerning given nationwide medication shortages. Emergency medical care also remains out of reach a significant number of Americans, the study suggests. GoodRx found that more than 28 million people live half an hour from the nearest hospital, nearly 50 million live over an hour from a facility able to handle major injuries, and 79 million are in areas with fewer than two hospital beds per 1,000 people. What People Are Saying Amanda Nguyen, Senior Health Economist at GoodRx, told Newsweek: "When care is far away or hard to afford, people may delay or skip care altogether. And that can have serious consequences. Our research found that nearly 1 in 5 Americans had to visit multiple pharmacies just to get their medication — and that's in areas with some access. Now imagine that same challenge in a county with no nearby pharmacy, hospital, or primary care provider. These delays and gaps add up, especially for people managing chronic conditions or without insurance." Tori Marsh, Senior Director of Research at GoodRx, discussing the issue of pharmacy closures and deserts with Newsweek previously, said: "Many of the counties hardest hit by pharmacy closures already had limited access. Now, they're losing their last remaining pharmacies, creating health care deserts with no immediate solutions in place." What Happens Next? Pharmacy closures are set to continue through 2025, as major chains such as CVS and Rite Aid scale down their nationwide footprint.
Daily Mail
12-07-2025
- Business
- Daily Mail
CVS, Walgreens, Macy's and dozens more bracing for '15,000 store closures' this year amid brutal retail culls
Store closures have continued to gather pace and remain on track to far surpass the number of stores that shut down last year. 5,822 stores closed in the first half of the year alone, a new report from Coresight Research revealed. By comparison, 7,325 brick-and-mortar stores were closed in the whole of last year. Coresight predicted that as many as 15,000 stores would shut up shop in 2025. While the figures remain under that prediction for now, experts are still concerned about the future of in-store retail as ecommerce giants continue to surge ahead. Iconic department store Macy's and beloved retailer Kohl's have been among the household names to announce mass closures this year. Pharmacies have also been thrown into the fray with leading chains such as Walgreens and CVS closing dozens of underperforming locations. Bankrupt Rite Aid has also closed more than 1,000 locations across the country as it goes through the bankruptcy process. 'US retail is in a period of unusually high real-estate churn as cyclical impacts confront structural shifts,' John Mercer, Coresight's head of global research, said of the report's findings. 'US store closures are up by two-thirds compared to one year earlier, while openings are flat,' he added. 'That closures total is compounding closure numbers that were already up, year over year, in week 27 of 2024.' The closure of local pharmacies is one of the biggest concerns amid the wider retail trend. The closures leave millions of Americans in so-called 'pharmacy deserts' — communities that do not have sufficient access to drugstores. More than 48 million Americans now lack access to a nearby drugstore, research from healthcare company GoodRx found. The figure has increased markedly from 41.2 million in 2021, according to the research. Online competitors — like upstarts Capsule, Blink Health, and even Amazon — have been eating at the brick-and-mortar giants because of their delivery methods and convenience. Rite Aid has now closed more than 1,000 stores 'It's not an overstatement to say pharmacies are facing unprecedented economic strain,' Miranda Rochol of healthcare technology firm Prescryptive Health, told Newsweek. 'With shrinking margins and reimbursement rates many small pharmacies now operate at a loss on common prescriptions,' Rochol explained. 'Large chains are restructuring in response to reduced revenues, declining foot traffic, and other outdated models that no longer align with the needs of modern consumers,' she added.
