Rite Aid is closing nearly 100 stores, with more to follow
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In a restructuring effort, Rite Aid, which filed for Chapter 11 bankruptcy protection, plans to close more than 100 stores nationwide.

A&G Real Estate Partners, which advises the drug store chain on its real estate portfolio, reports that the first batch of stores being sold are located in twelve states. California (17 stores), Maryland (4), Michigan (16), New Jersey (8), New York (17), Ohio (4), Oregon (2), Pennsylvania (17), New Hampshire (2), Washington (10), Alabama (1), Idaho (1).

The writing has been on the wall for Rite Aid, the third-largest standalone pharmacy chain in the US, since the drug store retail sector is struggling to compete with Amazon and big-box chains like Walmart, Target and Costco moving deeper into the space and offering more customer-friendly alternatives to nationwide pharmacy chains.

Furthermore, it was accused of filing unlawful opioid prescriptions for customers, compounding its difficulties.

The financial health of Rite Aid is much worse than that of its competitors. During the past six years, Rite Aid has lost nearly $3 billion.

While Rite Aid has secured $3.5 billion in financing and debt reduction agreements from lenders to keep the company afloat through its bankruptcy, it said it would accelerate store closures and sell off some of its businesses, including prescription benefit provider Elixir Solutions. A bankruptcy could also greatly reduce the company’s legal costs by resolving its legal disputes.