New Britain Rite Aid The Latest To Close Under Bankruptcy Filing

NEW BRITAIN, PA — The Rite Aid store at the Town Center of New Britain on Butler Pike is among the latest to close its doors as the beleaguered pharmacy chain struggles to stay alive.

A message on the store's message machine tells customers that their prescriptions have been confidentially transferred to the CVS Pharmacy at 298 West Butler Pike.

The store operated out of a 10,886 square foot space in the shopping center near the Giant Supermarket on Business Route 202.

In October, the pharmacy chain, which has more than 400 stores in Pennsylvania, announced that it would accelerate the closure of some under-performing stores under terms outlined in its Chapter 11 bankruptcy filing.

In October, the Philadelphia-based pharmacy chain announced it planned to close at least 150 stores, including 22 in the Keystone State. I’m Bucks County, stores have closes in Bristol Borough, Lower Makefield, Quakertown, and now New Britain.

Prescriptions of customers of the affected stores will be transferred to a nearby Rite Aid or other drug store “so that there is no disruption of service,” the company said in a statement. People who
work at the stores will also be transferred to other Rite Aid locations where possible, the company said.

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.”

Other 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.