Rite Aid to Close All New York Stores, Affecting Thousands of Lives

Rite Aid has announced it will be closing all 178 of its stores in New York State next month. This news was shared in a letter to employees on Monday by CEO Matthew Schroeder, the same day the company filed for Chapter 11 bankruptcy for the second time in just two years.

A Hard-Hit Company Facing Massive Financial Struggles

According to court documents and reports from Reuters, Rite Aid is carrying an overwhelming burden, between $1 billion and $10 billion in both assets and liabilities. The filing, made in the District of New Jersey, marks a grim milestone for the company, which only emerged from its first bankruptcy last June.

Why the Closures Are Happening Now

In his letter to employees, Schroeder pointed to a storm of financial challenges, economic downturn, increased supplier costs, and looming litigation. He said these pressures forced the company into layoffs and closures despite efforts to find alternative solutions, including seeking new funding and potential strategic partnerships.

What This Means for New York Communities

For many in New York State, Rite Aid has been more than just a store, it’s been a lifeline. In small towns and city neighborhoods, it’s where neighbors fill prescriptions, get flu shots, and stop in for everyday essentials. The loss of these 178 stores will leave a significant gap in healthcare access and jobs, especially in rural and underserved areas.

Pharmacy Services Will Continue - For Now

As the company navigates this bankruptcy process, customers can still access Rite Aid's pharmacy services, both in-store and online. The company says it has secured $1.94 billion in financing to keep operations going during the asset sale period. Prescriptions will be transferred to other providers, and the goal is to ensure continuity of care for customers.

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A Sudden and Unforeseen Blow to Employees

The layoffs are expected to begin on June 4, hitting thousands of employees across New York. The closures mark an emotional moment for workers who have dedicated years, sometimes decades, to the company.

A Message of Gratitude from Rite Aid's CEO

"For more than 60 years, Rite Aid has been a proud provider of pharmacy services and products to our loyal customers," Schroeder said in his statement. He expressed deep appreciation for the company’s employees, acknowledging their commitment and compassion even through uncertainty.

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A Closing Chapter for a Familiar Corner Store

Across New York, this news lands heavily. From Binghamton to Buffalo, Albany to the Adirondacks, Rite Aid has been a familiar part of our communities. The closures mark the end of an era, and one that leaves thousands of employees and millions of customers reflecting on what happens when a company that’s part of the neighborhood becomes another casualty of corporate collapse.