Rite Aid has announced the closure of all its 178 stores in New York after filing for bankruptcy again, following a previous filing in 2023. The company plans to wind down operations under a court-supervised process while attempting to sell its assets. Despite receiving $1.94 billion in new financing to support operations, CEO Matthew Schroeder noted the company faces challenges from competition and changing market dynamics. Founded in 1962, Rite Aid has struggled against rivals like CVS and Walgreens, exacerbated by legal troubles and the growth of online pharmacies.
CEO Matthew Schroeder acknowledged the company's ongoing struggles, blaming a fast-evolving retail and healthcare landscape and increased financial pressure. 'We are encouraged by meaningful interest from a number of potential national and regional strategic acquirors,' he said.
Rite Aid, founded in 1962, was once the third-largest drugstore chain in the country. But over the past decade, it's faced stiff competition from CVS and Walgreens, legal battles over its role in the opioid crisis, and the rise of online pharmacy disruptors.
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