All Rite Aid Stores In NY To Close, Or Be Sold, Including 18 On LI

NEW YORK — A popular pharmacy chain will be closing or selling all of its 178 New York locations: Rite Aid announced Tuesday that the business will commence Chapter 11 bankruptcy proceedings for the second time.

During the months to come, Rite Aid will shutter or sell its New York locations, including 18 on Long Island in spots such as Southampton, Hampton Bays, Eastport, Shirley, North Bellmore, Massapequa Park, and others across both Suffolk and Nassau Counties.

Rite Aid, sources said, is in active discussions with multiple potential buyers; however, any stores or assets sold will no longer be owned or operated by Rite Aid. Over the next few months, all LI stores will close or be sold, with no new merchandise ordered.

During this process, customers can continue to access pharmacy services and products, including prescriptions and immunizations, both in stores and online, sources said.

Rite Aid, a release said, announced Tuesday that it is "pursuing a strategic and value-maximizing sale process for substantially all of its assets. To facilitate this process, the company and its subsidiaries commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of New Jersey."

During that process, Rite Aid customers can continue to access pharmacy services and products in stores and online, including prescriptions and immunizations. In connection with the sale process and court-supervised proceedings, "the company is working to facilitate a smooth transfer of customer prescriptions to other pharmacies. Rite Aid employees assisting with this process will continue to receive pay and benefits," the release said.

Matt Schroeder, chief executive officer of Rite Aid, reflected: "For more than 60 years, Rite Aid has been a proud provider of pharmacy services and products to our loyal customers. While we have continued to face financial challenges, intensified by the rapidly evolving retail and healthcare landscapes in which we operate, we are encouraged by meaningful interest from a number of potential national and regional strategic acquirers. As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible."

Schroeder added: "I will be forever grateful to our thousands of associates for their commitment to Rite Aid and its mission, and I thank our entire team — from store associates to corporate employees — for their dedication to our customers and our company. With their support, we have played a critical role in supporting the healthcare needs of countless Americans across the communities that we are honored to serve."

To support Rite Aid during its sale process, which it intends to conduct under section 363 of the U.S. Bankruptcy Code, the company has secured commitments from certain of its existing lenders to access $1.94 billion in new financing, the release said. That financing, along with cash from operations, is expected to provide sufficient funding during the sale and court-supervised process.

The company intends to divest or monetize any assets that are not sold through the court-supervised process, the release said. Rite Aid has filed a number of customary motions with the court seeking authorization to support operations, including continued payment of employee wages and benefits, the company said.

Rite Aid stores to close or be sold on Long Island include locations in:

Eastport

Great Neck

Hampton Bays

Huntington

Kings Park

Lindenhurst

Massapequa Park

Middle Island

Mount Sinai

North Babylon

North Bellmore

Port Washington

Rockville Centre

Selden

Shirley

Southampton

West Islip

Westbury

Last year, following numerous nationwide closures, Rite Aid closed four additional Long Island locations including stores in Brentwood, Lake Ronkonkoma, Huntington Station and East Meadow, bankruptcy court documents indicted.

For a full list of New York Rite Aid locations, click here.