Rite Aid is set to close 31 stores in California as part of its bankruptcy restructuring plan, according to a federal bankruptcy filing on October 16.
The majority of the closures will occur in Southern California, with only seven stores remaining open. In total, Rite Aid plans to shut down 154 of its 2,100 retail pharmacy outlets nationwide.
“We regularly assess our retail footprint to ensure efficiency while meeting the needs of our customers, communities, and associates,” Rite Aid stated in an email to The Epoch Times. “As part of the court-supervised process, we will be closing underperforming stores to reduce rent expenses and improve overall financial performance.”
The pharmacy retailer, facing significant debt, revenue declines, increased competition, and lawsuits related to opioid prescriptions, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of New Jersey.
Rite Aid also announced the appointment of Jeffrey Stein, an expert in corporate transformations, as its CEO and chief restructuring officer. Stein will also join the company’s board of directors.
“Rite Aid has been serving customers and communities for over 60 years, and the steps we are taking now will make us a stronger company,” said Mr. Stein in a press release. “We will work closely with our landlords to determine the best path forward for each store.”
In the fiscal quarter ending June 3, Rite Aid reported a revenue decrease of $6 billion, bringing its total revenue to $5.7 billion. Despite a nearly 5 percent increase in prescriptions, the company reported a net loss of nearly $307 million. Prescription sales account for approximately 75 percent of store sales.
A Rite Aid store is shown in downtown Los Angeles on Oct. 16, 2019. (Mike Blake/Reuters)
The closure of 31 stores in California represents only about 7 percent of Rite Aid’s retail presence in the state. Prior to the closures, the chain operated 448 locations in California.
According to Rite Aid, some stores have already closed or will be closing in the coming weeks.
Established in 1962, Rite Aid operates over 2,500 stores in 19 states, primarily on the east and west coasts.
Here is the list of California store closures:
Los Angeles County
4044 Eagle Rock Blvd., Los Angeles
4046 South Centinela Ave., Los Angeles
959 Crenshaw Blvd., Los Angeles
7859 Firestone Blvd., Downey
4402 Atlantic Ave., Long Beach
935 N. Hollywood Way, Burbank
139 N. Grand Ave., Covina
13905 Amar Rd., La Puente
920 E. Valley Blvd., Alhambra
15800 Imperial Hwy., La Mirada
North of Los Angeles
2738 E. Thompson Blvd., Ventura
720 N. Ventura Rd., Oxnard
Orange County
24829 Del Prado, Dana Point
3029 Harbor Blvd., Costa Mesa
30222 Crown Valley Pkwy., Laguna Niguel
19701 Yorba Linda Blvd., Yorba Linda
1406 W. Edinger Ave., Santa Ana
8509 Irvine Center Dr., Irvine
Inland Empire
25906 Newport Rd., Menifee
3000 S. Archibald Ave., Ontario
San Diego County
6505 Mission George Rd., San Diego
8985 Mira Mesa Blvd., San Diego
1670 Main St., Ramona
3813 Plaza Dr., Oceanside
Northern California
20572 Homestead Rd., Cupertino
2620 El Camino Real, Santa Clara
901 Soquel Ave., Santa Cruz
571 Bellevue Rd., Atwater
5409 Sunrise Blvd., Citrus Heights
499 Alvarado St., Monterey
1309 Fulton Ave., Sacramento
What impact will the closure of 31 Rite Aid stores in California have on the company’s overall retail presence in the state
Rite Aid, a pharmacy retailer, has announced plans to close 31 stores in California as part of its bankruptcy restructuring plan. The majority of the closures will occur in Southern California, with only seven stores remaining open. This decision comes as Rite Aid aims to reduce rent expenses and improve its overall financial performance.
In a statement to The Epoch Times, Rite Aid explained that they regularly assess their retail footprint to ensure efficiency while meeting the needs of their customers, communities, and associates. The closure of underperforming stores is a strategic move to achieve these goals.
Rite Aid’s Chapter 11 bankruptcy filing in the U.S. Bankruptcy Court for the District of New Jersey was driven by several factors, including significant debt, revenue declines, increased competition, and lawsuits related to opioid prescriptions. To navigate through this challenging period, Rite Aid appointed Jeffrey Stein, an expert in corporate transformations, as its CEO and chief restructuring officer. Stein’s extensive experience will be valuable as the company aims to restructure and emerge stronger.
“We will work closely with our landlords to determine the best path forward for each store,” said Mr. Stein in a press release. Rite Aid has been serving customers and communities for over 60 years, and the steps they are taking now aim to make the company stronger.
In the fiscal quarter ending in June, Rite Aid reported a revenue decrease of $6 billion, resulting in total revenue of $5.7 billion. Despite a nearly 5 percent increase in prescriptions, the company experienced a net loss of nearly $307 million. It is worth noting that prescription sales account for approximately 75 percent of store sales.
The closure of the 31 stores in California represents about 7 percent of Rite Aid’s retail presence in the state. Prior to the closures, the chain operated 448 locations in California.
Rite Aid has already closed some stores, while others will be closing in the coming weeks. The list of store closures includes locations in Los Angeles County, such as 4044 Eagle Rock Blvd
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