Rite Aid, one of the country’s largest drugstore chains, is on the brink of closing the doors of more than 150 stores as part of a planned restructuring due to bankruptcy proceedings.
This news was first announced by Rite Aid’s CEO, Heyward Donigan, who said that the closures were necessary to strengthen the financial stability of the company and to focus on its growth. She also said that the company is “transitioning to a smaller, healthier and more focused business that will serve our customers better in the long run.”
The closures are part of the company’s efforts to reduce their large debt load and unprofitable stores that have been a major drag on the company’s performance in recent years. The closures will take effect over the next few months, with the majority of stores closing by the end of May 2021.
In addition to the store closures, Rite Aid is also in the process of restructuring their debt. The company is reportedly in talks with creditors to restructure their debt in order to provide the company with the appropriate level of capital for future operations and growth.
It is currently estimated that the restructuring process will cost the company about $600 million in lost revenue. However, Rite Aid is confident that the restructuring will enable the company to address their debt issues and become a profitable and sustainable business.
The closure of these stores comes as a major shock, as the company had been expanding its reach in recent years. It’s a sad time for all those affected by this news, from the employees, to the customers, to the communities in which the stores were located.
Rite Aid, however, is confident that the restructuring will ultimately lead to a stronger, and better positioned company that will provide customers with the services and products they have come to rely on.