BRICK-AND-MORTAR stores nationwide are facing a crisis, with hundreds of retail locations shutting their doors in 2024.
Rite Aid is the latest retail store to face closures, as the third-largest drugstore chain in the US, following a bankruptcy settlement earlier this year, continues to close locations across several states.
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Why are Rite Aid stores closing?
Rite Aid plans to close nearly 30 stores in two states, Ohio and Michigan.
The company is in a federal bankruptcy case, and according to court documents filed in the week of June 17, part of the settlement includes shuttering low-performing or underperforming store locations.
One of those locations is in Oregon, Ohio, at 3362 Navarre Ave.
“I was really upset because I come here quite often. It’s so convenient for me, and I’m just upset about it,” Carol Deluca said, as reported by WTVG 13 Action News.
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“It’s kind of disappointing to see all the Rite Aids at that going down because it’s important to the community to get medications and stuff,” Logan Barshel, a Rite Aid customer, said.
Rite Aid has not officially confirmed which stores will be closing – or when the stores will shutter their doors for good.
The company has, however, closed more than 200 stores since 2021.
It's expected that 12 locations in Michigan, along with 15 Ohio stores, will shut down in the next few weeks or months.
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Rite Aid locations in Michigan shutting their doors include:
- Livonia (37399 Six Mile Rd, Livonia, MI 48152)
- Burton (G4033 Fenton Rd, Burton, MI 48529)
- Burton (6026 Lapeer Rd, Burton, MI 48509)
- Flint (4519 Richfield Rd, Flint, MI 48506)
- Ludington (936 E Ludington Ave, Ludington, MI 49431)
- Wyandotte (1998 Biddle Ave, Wyandotte, MI 48192)
- Spring Lake (603 E Savidge St, Spring Lake, MI 49456)
- Bay City (3880 Wilder Rd, Bay City, MI 48706)
- Marlette (2985 Main Street, Marlette, MI 48453)
- Grosse Pointe Farms (107 Kercheval Ave, Grosse Pointe Farms, MI 48236)
- Milford (640 N Milford Rd, Milford Charter Twp, MI 48381)
- Allen Park (15411 Southfield Rd, Allen Park, MI 48101)
Bankrupt Rite Aid announces new round of stores closures in seven states after shutting down 250 locations since October
Rite Aid locations in Ohio closing down include:
- Ashtabula (2148 Lake Ave, Ashtabula, OH 44004)
- Defiance (1816 E 2nd St, Defiance, OH 43512)
- Youngstown (3527 Canfield Rd, Youngstown, OH 44511)
- Coshocton (218 Chestnut St, Coshocton, OH 43812)
- Springfield (1805 S Limestone St, Springfield, OH 45505)
- Cleveland (3402 Clark Ave, Cleveland, OH 44109)
- Oregon (3362 Navarre Ave, Oregon, OH 43616)
- Toledo (2434 W Laskey Rd, Toledo, OH 43613)
- Warren (1560 Parkman Rd NW, Warren, OH 44485)
- Alliance (1895 W State St, Alliance, OH 44601)
- Massillon (242 Lincoln Way W, Massillon, OH 44647)
- Bowling Green (722-740 S Main St, Bowling Green, OH 43402)
- Wheelersburg (8130 River Rd, Wheelersburg, OH 45694)
- St. Mary's (1502 Executive Drive, St. Marys, OH 45885)
- Tiffin 530 W Market St, Tiffin, OH 44883)
Prescriptions will likely be transferred to nearby pharmacies, including Walgreens or CVS.
A list of store locations potentially closing in Michigan and Ohio, along with a complete list of store closures, can be found on WZZM 12 News.
Who owns Rite Aid?
Rite Aid Corporation was founded in 1962 in Scranton, Pennsylvania.
Businessman, lawyer, and philanthropist Alex Grass opened the drugstore chain under the name Thrift D Discount Center.
In 1968, Rite Aid adopted its current name and made its debut as a public company.
By 1970, it operated under the symbol RAD on the New York Stock Exchange.
By 1972, the store had over 250 locations across 10 states.
By 1983, sales had reached $1 billion, and the chain officially became the third-largest retail drugstore chain in the US.
In 2006, Rite Aid acquired Brooks Eckerd, including over 1,8000 Eckerd Pharmacy and Brooks Pharmacy stores.
At its peak in 2008, Rite Aid operated over 5,000 stores.
That same year, it began closing stores in select markets, including Las Vegas, San Francisco, and eastern Idaho.
In the mid-2010s, Walgreens and Albertsons attempted to acquire Rite Aid but failed to complete the deal.
Walgreens did, however, purchase nearly 2,000 stores nationwide and ended up closing around 600 stores – most of which were within a mile radius of an existing Walgreens.
In the present day, Rite Aid's chief executive officer and chief restructuring officer is Jeffrey Stein, the founder and managing partner of Stein Advisors LLC.
Rite Aid's chief financial officer and executive vice president is Matt Schroeder, who previously served as the company's chief accounting officer and treasurer.
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Did Rite Aid file for bankruptcy?
Rite Aid announced that it was preparing to file for Chapter 11 bankruptcy protection on August 25, 2023.
Along with hundreds of underperforming stores, the chain had been plagued with, especially in recent years, several high-profile lawsuits over the company's role in the opioid crisis.
On October 15, 2023, Rite Aid and its affiliated debtors applied for Chapter 11 bankruptcy protection in the US District Court for the District of New Jersey.
The company was delisted from the NYSE and shuttered nearly 600 locations by the end of 2023.
On December 21, 2023, Rite Aid confirmed it would sell its Elixir Division to MedImpact Healthcare Systems for nearly $600 million.
On March 26, 2024, Rite Aid announced that it had settled with its lenders, the US Department of Justice, and McKesson, a drug supplier.
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"We have reached an agreement on all key points with all key economic stakeholders," Rite Aid attorney Aparna Yenamandra said at a bankruptcy court hearing in Trenton, New Jersey, as reported by Reuters.
As of June 2024, amidst several dozen store closures, Rite Aid has yet to issue a statement regarding the bankruptcy filing.
