Rite Aid Closing 2 More NJ Locations As Bankruptcy Looms

NEW JERSEY — Struggling pharmacy chain Rite Aid plans to close an additional 31 stories, including two in New Jersey, as it prepares to file Chapter 11 bankruptcy, according to reports citing a recent court filing.

Rite Aid’s bankruptcy comes amid slumping sales and heavy debt from an opioid lawsuit filed by the Justice Department in March that accuses the company of filling prescriptions for large quantities of opioids “that had obvious, and often multiple, red flags indicating misuse.”

In October, the company announced it planned to close at least 150 stores, including two dozen in New Jersey.

The latest New Jersey stores marked for closing, according to a Fast Company report, include:

• 93 Atlantic Blvd., Beachwood
• 121 W. Main St., Moorestown

The New Jersey stores announced for closure in October include:

• 1796 4057 Asbury Ave Ste 8, Tinton Falls
• 1970 431 Haledon Avenue, Haledon
• 1977 35 Mill Road, Irvington
• 2521 1636 Route 38 Suite 49, Lumberton
• 3477 773 Hamilton Street, Somerset
• 4045 1434 S Black Horse Pike, Williamstown
• 10415 3 Marshall Hill Road, West Milford
• 10449 210 Bridgeton Pike, Mantua
• 10456 108 Swedesboro Road Suite 20, Mullica Hill
• 10505 2370 Route 33, Robbinsville
• 10514 1726 Route 37, East Toms River
• 10517 86 B Lacey Road, Whiting

Other states affected by the newest closures include California, Connecticut, Maryland, Michigan, Nevada, New York, Ohio, Oregon, Pennsylvania, Virginia and Washington, according to Fast Company.

It's unclear when the company plans to close the locations.

In a statement to USA Today, Rite Aid spokesperson Catherine Carter said the stores slated for closure have been underperforming and will be closed "to further reduce rent expense and strengthen overall financial performance."

When announcing the first round of closures in October, the company said prescriptions of customers of the affected stores would be transferred to a nearby Rite Aid or other drug store “so that there is no disruption of service." People who work at the stores will also be transferred to other Rite Aid locations where possible, the company said.

The closures come as drug store chains, including rivals CVS and Walgreens, have settled similar lawsuits, but were better positioned financially. But even they are struggling and closing in a tough environment for national drug store chains as Amazon and big-box retailers like Walmart, Target, Costco and others make it more convenient to have prescriptions filled, CNN reported.

Rite Aid said it had secured $3.45 billion in financing and debt reduction agreements that will help it stay afloat through the court-supervised bankruptcy. The company will sell off its Elixir Solutions, its prescription benefit provider.

Additionally, the agreement settles outstanding lawsuits against the company for allegedly filing unlawful opioid prescriptions, one of the exacerbating factors contributing to Rite Aid’s bankruptcy.