Rite Aid pharmacies in Corning, Bath and Wellsboro, Pa. will close in the coming months unless the company, which initiated Chapter 11 bankruptcy proceedings this week, finds a potential buyer.
The stores at 100 Cohocton St. in Corning, 338 W. Washington St. in Bath, and 24 E. Avenue in Wellsboro, Pa. are expected to remain operational during the bankruptcy proceedings. The pharmacies will eventually close if they are not sold.
“We will use this process to pursue a sale of our prescriptions, pharmacy and front-end inventory, and other assets,” a Rite Aid spokesperson said in a statement. “This means that over the next few months, all Rite Aid distribution centers will close, and all stores will either close or be operated by a new owner.”
Rite Aid CEO Matt Schroeder pointed to financial challenges that have intensified because of “the rapidly evolving retail and healthcare landscapes” for the filing in U.S. Bankruptcy Court for the District of New Jersey.
The company, which operates 1,240 stores across 15 states, said that during the process, customers will be able to access pharmacy services and that it is “working to facilitate a smooth transfer of customer prescriptions to other pharmacies.”
Rite Aid has 178 locations in New York state, according to its website.
The company announced that it has acquired $1.94 billion in new financing to keep stores operational during the bankruptcy proceedings and a potential sale.
Employees will continue to receive pay, although Bloomberg News reported Monday that the company will cut jobs after failing to secure additional financing from its lenders, citing an internal letter from Schroeder.
Second bankruptcy for Rite Aid
Rite Aid previously filed for Chapter 11 protection in October 2023 after reporting $750 million in losses for the previous fiscal year.
The company used its earlier bankruptcy to cut $2 billion in debt, close hundreds of stores, including one in Elmira, sell its pharmacy benefit company Elixir, and negotiate settlements with its lenders, drug distribution partner McKesson, and other creditors.
The 2023 bankruptcy also resolved hundreds of lawsuits alleging that Rite Aid ignored red flags when filling suspicious prescriptions for addictive opioid pain medications.
Despite those settlements, Rite Aid still had $2.5 billion in debt when it emerged from bankruptcy as a private company owned by its lenders in 2024.
Pharmacy chains such as Rite Aid and rivals including Walgreens and CVS have been under pressure as falling drug margins and competition from Walmart and Amazon have led to the closure of hundreds of stores.
Staff writer Marcia Greenwood contributed to this story, which also includes reporting by Reuters and USA Today Network.
This article originally appeared on The Leader: Rite Aid stores in Corning, Bath, Wellsboro likely to close in coming months. What we know
Reporting by Jeff Smith, Corning Leader / The Leader
USA TODAY Network via Reuters Connect
