RITE Aid doesn’t want customers to transfer their prescriptions to other pharmacies, despite its financial woes.
The chain filed for Chapter 11 bankruptcy protection for a second time earlier this month.
Rite Aid is hoping customers don’t transfer prescriptions yet (stock image)Getty Images - GettyIts first was in October 2023, and the company had around $8.6 billion in debt at the time.
While it managed to cut that total by $2 billion and shed 800 stores when it restructured and emerged in September 2024, it wasn’t enough.
Court documents from this month’s filing showed continued debt struggles that Rite Aid attributed to significant pressures in the retail healthcare sector.
It had also faced a legal battle related to the opioid crisis in the United States and changes in consumer spending in recent years.
Some industry experts have also cited continued competition from CVS and Walgreens as greatly affecting Rite Aid’s ability to recover from the first bankruptcy filing.
Rite Aid has still secured about $1.94 billion in financing to support its operations as it attempts to restructure and emerge again in 2025.
CARE CONCERNS
It’s also committed to transferring customers’ prescriptions to other pharmacies to avoid any disruptions in care, but hopes that many will decide not to do so, according to Fast Company.
That is, unless the company finds a buyer quickly enough.
Rite Aid argued that the sale of its assets, if prolonged or completed in a “disorderly and ad hoc manner,” could lead to competing pharmacies being severely “inundated with requests,” per court documents.
That would lead to a backup in prescription orders amid a struggle to “efficiently process” the sudden influx of transfers.
Rite Aid estimates that it fills over 100 million prescriptions annually, which could mean significant transfer processing time.
“Those pharmacies must receive legal prescriptions, integrate them into their systems, acquire a sufficient supply of medication to fill the prescriptions, and be staffed to handle the additional prescriptions,” Rite Aid noted in its bankruptcy filing.
“This is no small task.”
Rite Aid told the publication in a statement that it remains in conversations with potential buyers, and some underperforming stores are set to be sold, with at least 68 confirmed to shutter their doors for good.
Rite-Aid stores closing by state
California
3860 Sepulveda Blvd., Torrance, CA 5075 Olivehurst Ave., Olivehurst, CANew Hampshire
360 Summer St., Bristol, NH 41 Carroll St., Pittsfield, NHNew York
9 Broad St., Salamanca, NY 1070 Genesee St., Buffalo, NYOregon
728 South West 4th Ave., Ontario, OR 4041 Nw Logan Rd., Lincoln City, OR 2049 West Cascade Ave., Hood River, OR 178 West Ellendale Ave., Dallas, OR 1217 Campbell St., Baker City, OR 44 Michigan Ave. NE, Bandon, OR 313 South Roosevelt Dr., Seaside, OR 626 Mcclaine St., Silverton, ORPennsylvania
805 Huntingdon Pike, Huntingdon Valley, PA 6 Bochicchio Blvd., Moscow, PA 601 Delaware Ave., Palmerton, PA 315 West Fourth St., Quarryville, PA 2201 West Allegheny Ave., Philadelphia, PA 10 Newport Plaza, Newport, PA 801 Grow Ave., Montrose, PA 2503-05 Welsh Rd, Philadelphia, PA 5 Friendly Dr., Duncannon, PA 260 West Lehigh Ave. #80, Philadelphia, PA 3145 Main St., Morgantown, PA 205 Center St., Tamaqua, PA 9635 William Penn Hwy., Huntingdon, PA 15 West Centre St., Mahanoy City, PA 4530 North 5th St., Philadelphia, PA 101 East Shirley St., Mt Union, PA 4390 Richmond St., Philadelphia, PA 5201 Spring Rd Suite 6, Shermans Dale, PA 126 W. Main St., Grove City, PA 111 North Plaza, Apollo, PA 5214-30 Baltimore Ave., Philadelphia, PA 1941 Derry St., Harrisburg, PA 5400 Rising Sun Ave., Philadelphia, PA 901 S Saint Marys St., Saint Marys, PA 200 Resort Plaza Dr., Blairsville, PA 630 Main St., Portage, PA 207 Route 6 West, Coudersport, PA 838 Fifth Ave., Ford City, PA 620 E Allegheny Ave., Emporium, PA 100 South Third St., Conneaut Lake, PA 200 Memorial Blvd., Connellsville, PA 59 North Main St., Port Allegany, PA 610 Broad St., New Bethlehem, PA 1340 Main St., Burgettstown, PA 1365 Logan Ave., Tyrone, PA 1212 Second St., Cresson, PA 201 West Mahoning St., Punxsutawney, PA 165 Butler Rd, Kittanning, PA 100 Franklin St., Mercer, PA 1222 Brownsville Rd, Pittsburgh, PA 521 North Fraley St., Kane, PA 3939 Butler St., Pittsburgh, PA 1 East High St., Union City, PA 2150 Brownsville Rd Ste120, Pittsburgh, PAVirginia
115 Brunswick Square Court, Lawrenceville, VA 144 Scottsville Center, Scottsville, VA 4171 Lee Jackson Hwy., Ste 113, Greenville, VA 200 Augusta Avenue, Grottoes, VAWashington
27000 Miller Bay Rd. Ne, Kingston, WA 909 East Yelm Ave., Yelm, WA 608 W. Stanley St., Granite Falls, WA 609 Omache Dr., Omak, WA 35013 Snoqualmie Pkwy., Snoqualmie, WA 1517 Commercial Ave., Anacortes, WACourt documents noted the closing Rite Aid pharmacies had “limited to no value.”
It currently has over 1,200 locations across 15 states.
EXPERT’S THOUGHTS
Some experts, like Joe Camberato, CEO of National Business Capital, noted that Rite Aid’s second bankruptcy could end up improving pharmacy retailers for consumers in the long run.
Camberato said that Walgreens is making advancements for automated prescription fillings, something Rite Aid hadn’t yet tapped into.
“If it pushes the rest of the industry to actually improve the customer experience, streamline operations, and treat pharmacy workers better, then maybe something good comes out of it,”he told Fast Company.
Rite Aid also detailed in its filing that employees would continue to receive pay during the bankruptcy proceedings.
It will also attempt to retain staff wherever it can when the dust settles.
Walgreens is also closing several locations across the country this year.
CVS recently confirmed that one million patients across 16 states will lose coverage soon amid the CEO’s warning of “pharmacy deserts.”
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