Rite Aid Closing 4 More PA Locations As Bankruptcy Looms

PENNSYLVANIA — Struggling pharmacy chain Rite Aid plans to close an additional 31 stories, including four in Pennsylvania, 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 22 in Pennsylvania.

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

• 927 Paoli Pike, West Chester
• 821 E. Bishop St., Bellefonte
• 6200 Saltsburg Rd., Pittsburgh
• 2545 Aramingo Ave., Philadelphia

The 22 Pennsylvania stores announced for closure in October include:

• 2442 950 East Baltimore Pike, Yeadon
• 2709 8235 Stenton Avenue, Philadelphia
• 3377 7941 Oxford Avenue, Philadelphia
• 3457 136 North 63rd Street, Philadelphia
• 3681 5440 Lansdowne Avenue, Philadelphia
• 4616 208 East Central Avenue, Titusville
• 7827 1080 S West End Blvd, Quakertown
• 10900 700 Stevenson Blvd., New Kensington
• 10901 351 Brighton Avenue, Rochester
• 10906 5235 Library Road, Bethel Park
• 10908 5990 University Blvd Ste 30, Moon Township
• 10943 2501 Saw Mill Run Blvd, Pittsburgh
• 10949 5410 Keeport Drive, Pittsburgh
• 10967 6090 Route 30, Greensburg
• 10974 4830 William Penn Highway, Export
• 10991 1730 Wilmington Road, New Castle
• 11042 2178 W. Union Blvd., Bethlehem
• 11053 1628 South Fourth Street, Allentown
• 11134 2401 East Venango Street, Philadelphia
• 11135 6327-43 Torresdale Avenue, Philadelphia
• 11160 200 W. Ridge Avenue Ste 112, Conshohocken
• 12999 301 Eisenhower Drive, Hanover
• 7783 7036 Wertzville Road, Mechanicsburg

Other states affected by the newest closures include New Jersey, California, Connecticut, Maryland, Michigan, Nevada, New York, Ohio, Oregon, 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.