Pharmacy With Multiple New York Locations Files for Bankruptcy

A popular pharmacy that has over 200 New York locations has officially filed for bankruptcy protection.

The list of places that have filed for bankruptcy protection over the last few years continues to grow as the third largest name in pharmacies has officially filed. The Christmas Tree Shop, Bed Bath & Beyond, and JC Penny are just a few of the major companies that have filed for bankruptcy in the last few years and now, it appears we can add a big name in pharmacies to the bankruptcy list.

Rite Aid Files for Bankruptcy

With somewhere around 2,100 stores across the country, Rite Aid officially filed for bankruptcy worrying many that it could mean they might need to find a new pharmacy to handle their prescriptions and more. According to CNN, Rite Aid filed for Chapter 11 bankruptcy protection on Sunday (10/15), after suffering what company officials are calling awful earnings. Rite Aid is not only battling rivals like CVS and Walgreens for customers but they are also spending millions in legal fees as they fight in court over allegedly filling unlawful opioid prescriptions.

Rite Aid Loses Billions

According to court papers, Rite Aid said they expect losses to increase significantly after they lost about three-quarters of a billion dollars between March 2022 and March 2023. The financial shape of Rite Aid has been trending down for the last six years as they have tallied nearly $3 billion in losses since 2017 according to CNN. The bankruptcy was not a surprise to many financial experts like the managing director of GlobalData Neil Saunders saying

"It was always a matter of when, not if, Rite Aid would file for bankruptcy. The company has been deep in the red for the past six years."

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Will Rite Aid Close All Stores?

After filing court papers, the company did say that they had secured financing to keep the company afloat through bankruptcy but they also said they would "accelerate its pace of store closures and sell off some of its businesses" according to CNN. It's unclear how the court filings will affect the 200+ New York Rite Aid locations or stores in other states, but when they do announce store closing plans we will update this article.