Rite Aid has shuttered more than 520 locations since it filed for Chapter 11 bankruptcy in October, Bloomberg reported May 3.
Here are five things ASCs need to know:
1. Of the closures, 103 are in Pennsylvania, 101 are in California and 61 are in New York, according to Bloomberg.
2. Although the company is working on a deal with bondholders to exit bankruptcy, the closures are one-fourth of the 2,111 stories it operated in October. According to the report, bondholders have agreed to provide the company $57 million in exchange for exiting Chapter 11.
3. CEO Jeffrey Stein said in October that Rite Aid was "burdened by unprofitable stores" and could exit leases only through Chapter 11, according to Bloomberg.
4. Other major retailers are also closing locations. Walmart Health is closing all 51 of its clinics and shutting down its virtual care services. Walgreens' VillageMD has made plans to pull out of several markets in 2024 and has exited Illinois, Indiana and Florida with plans to leave the Nevada market.
5. "In connection with the court-supervised process, we notified the court of certain underperforming stores we are closing to further reduce rent expense and strengthen overall financial performance," a Rite Aid spokesperson told Becker's in April, when bankruptcy court filings revealed the company had plans to shutter additional locations. "At this time, we have not made or confirmed any decisions on additional specific store closures as part of our financial restructuring process."