KTLA

Rite Aid to close dozens of stores, including 19 in California

After filing for bankruptcy for a second time earlier this week, court documents indicate pharmacy giant Rite Aid could soon begin closing stores before auctioning off its leases and buildings.

Now, nearly all of its 1,240 stores are expected to be listed for sale, pending court approval, by A&G Real Estate Partners. A flyer shared with Nexstar’s WHTM lists 1,187 retail leases and 50 fee-owned properties across 15 states.


A&G Real Estate Partners says they anticipate rolling bid deadlines and auctions over the next few months, starting in May. Court documents outlining the expected auction process were filed Tuesday.

Rite Aid previously said stores would remain open as they work with customers to transfer their prescriptions elsewhere. Additional court documents filed Tuesday, however, outlined the Rite Aid locations projected to be among the first wave of closures. The plan still needs court approval, the case docket shows.

The Ride Aid stores set to close span nine states:

California

Connecticut

Massachusetts

New Hampshire

New Jersey

New York

Oregon

Pennsylvania

Washington

Closures are also pending court approval.

In a letter from Rite Aid CEO Matthew Schroeder to employees obtained by Nexstar’s WHTM, Schroeder states that a first round of employment termination began on Monday. The letter listed impacted locations as the Rite Aid Valley Green Office Facility in Etters, Pennsylvania, and the Rite Aid Collaboration Center in Philadelphia.

“We apologize that we were unable to provide more advance notice of this action,” the letter states. “We are providing this notice to you as soon as practicable. Rite Aid has been actively seeking capital, including negotiating with its lenders for additional capital to continue to run its business. Unfortunately, our efforts were unsuccessful.”