Rite Aid to Close Four Long Island Drugstores as Part of Bankruptcy Restructuring

Rite Aid, the Philadelphia-based retail pharmacy chain, has announced plans to close 53 additional drugstores across the United States, including four locations on Long Island. This comes as part of the company's ongoing efforts to restructure its operations after filing for Chapter 11 bankruptcy protection in October of last year.

Since the initial bankruptcy filing, Rite Aid has already shuttered hundreds of stores nationwide. Now, the company has added 53 more planned store closings to its list, affecting stores in New York, California, Michigan, and five other states. Among the Long Island closures are four Rite Aid stores, including locations in Brentwood, East Meadow, Huntington Station, and Lake Ronkonkoma.

The closure dates for these Long Island stores vary, with the pharmacy at the Brentwood store set to close on April 22nd and the rest of the store to close on May 17th. The East Meadow store's pharmacy will close on May 2nd, followed by the rest of the store on May 21st. In Huntington Station, the pharmacy will shut down on April 29th, with the rest of the store closing on May 22nd. Lastly, the Lake Ronkonkoma store's pharmacy is set to cease operations on April 18th, with the rest of the store closing on May 21st.

Rite Aid has clarified that several factors, including lease and rent obligations, local business conditions, viability, and store performance, are considered when deciding which stores to close. The company aims to further reduce rent expenses and strengthen its overall financial performance through these store closures.

Although Rite Aid did not disclose the exact number of employees affected by the closures, it stated that approximately 75% of employees from previously closed or soon-to-be-closed stores have accepted transfers to other locations. The company is also working on transferring customers' prescriptions from the closing stores to alternative pharmacies.

Prior to the bankruptcy filing, Rite Aid had faced annual losses for several years and had already taken measures to cut costs, including closing around 210 stores in the 12-month period leading up to September 30th. Additionally, the company has faced legal challenges and settlements related to its alleged role in the oversupply of addictive opioid prescriptions.

With $8.6 billion in debts and $7.6 billion in assets, Rite Aid listed its financial status in its bankruptcy filing in the U.S. Bankruptcy Court in New Jersey. The chain currently operates 1,690 stores in 16 states, with 23 stores on Long Island, down from 38 when it first filed for bankruptcy.

Real estate firm A&G Real Estate Partners, based in Melville, is currently marketing 37 properties leased by Rite Aid, including a large Brentwood drugstore, as well as six properties owned by the retailer. Mike Matlat, Senior Managing Director at A&G, stated that the firm is actively seeking buyers for the owned properties and is selling the lease assignments for stores with at least 10 years of remaining term, including options to renew.

As Rite Aid continues its restructuring efforts, the closure of additional stores and the subsequent impact on employees, customers, and the real estate market remain to be seen.