Pharmacy chain Rite Aid, which operates a store in Newtown Township, has filed for Chapter 11 bankruptcy protection for the second time since 2023.
Court filings reviewed by NewtownPANow.com showed that while the company has not announced store closures in the area, the company is preparing to close additional locations in the coming weeks.
In a statement, Philadelphia-based Rite Aid said it has begun “pursuing a strategic and value-maximizing sale process for substantially all of its assets.”
“While we have continued to face financial challenges, intensified by the rapidly evolving retail and healthcare landscapes in which we operate, we are encouraged by meaningful interest from a number of potential national and regional strategic acquirors. As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible,” Rite Aid CEO Matt Schroeder said.
Schroeder stated in an internal memo obtained by Bloomberg News that the company will begin cutting jobs at its corporate offices.
Rite Aid assured customers in a letter this week that it plans to keep uninterrupted pharmacy services during the bankruptcy proceedings.
A message on the Rite Aid website Tuesday stated the company will no longer honor Rite Aid gift cards or accept returns or exchanges after June 5.
Rite Aid originally filed for bankruptcy in 2023 and emerged less than a year later in 2024.
Despite coming out of bankruptcy, the chain has had bare selves at local stores over the past two years.
According to a court document filed in New Jersey bankruptcy court, Rite Aid stated that its post-bankruptcy plan relied on vendors returning to less restrictive payment terms and assurances of credit from capital providers. All of which the company claims did not materialize as expected.
The filing also cited macroeconomic pressures and reduced consumer spending as negative factors impacting the company, which reportedly operates more than 1,000 stores.
Advertisement
Convenient Legal Access to High Quality Cannabis Just A Few Minutes Away!
