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Rite Aid To Close 29 New York Locations; 8 In New Jersey
RETAIL NEWS
Don’t worry just yet about running out to pick up cough syrup or a national tabloid fresh with Jennifer Aniston’s latest whatever at the Rite Aid on Route 303 in Valley Cottage. It is not on the list of target stores to close, as Rite Aid faces bankruptcy. Rite Aid’s only has one location in Rockland County.
Most Hudson Valley Rite Aid stores will continue to operate with the exception of the Rite Aid located at 393-397 Windsor Highway in New Windsor, according to a list issued that cites nearly 100 proposed closures.
The Rite Aid Corporation last week filed for Voluntary Chapter 11 Bankruptcy in the federal bankruptcy court in New Jersey with plans to re-organize by closing stores, settling litigation claims related to opioid prescriptions, all while revamping and updating its remaining stores.
Rite Aid operates more than 2,100 drugstores. The chain, at one time, had as many as 4,600 stores, but sold nearly half of the company’s locations to Walgreens in 2017. Walgreens had previously planned to buy Rite Aid in its entirety, but US regulators blocked the deal.
The restructuring plan included an injection of $3.45 billion in new financing to continue operations.
To continue operating, Rite Aid reached terms with its drug supplier McKesson Corp. to ensure that customers’ prescriptions will continue to be filled during Rite Aid’s bankruptcy.
These are tough times for drug chains, which are competing with Amazon and a proliferation of big box chains selling similar merchandise. The Valley Cottage Rite Aid was served a blow when CVS opened a new store last year practically “next door” on Route 303.
Of the three largest drug store chains, Rite Aid is the smallest, behind CVS and Walgreens.
Rite Aid, which filed its bankruptcy case on Sunday night in New Jersey, sued McKesson the following morning, seeking to stop it from terminating a drug supply agreement that accounts for 98 percent of the pharmacy chain’s prescription drug sales. An agreement between the two parties will enable Rite Aid to continue filling prescriptions through the bankruptcy case provided Rite Aid makes faster payments to McKesson on new drug shipments and ensures new deliveries are paid for before it pays other creditors.
To raise additional cash, Rite Aid also plans to sell off its prescription benefit provider Elixir Solutions.
Store Closures
Various reports of closures are circulating, with A&G Real Estate Partners marketing 17 store leases and company owned properties in New York. Business Insider reports intended closures of 19 additional stores, primarily in NYC and Long Island.
A press release issued by Rite Aid states that retail and online platforms remain open, including pick-up and delivery options. Pharmacies will continue to fill prescriptions and customers can expect various promotions and opportunities for savings, with Rite Aid Rewards members being able to access special deals and member-only promotions.
Rite Aid stores closing in New York state (according to Business Insider):
- Bay Shore: 836 Sunrise Highway
- Bellmore: 2784 Sunrise Highway
- Brooklyn: 2981 Ocean Avenue, 2002 Avenue U
- Cheektowaga: 2887 Harlem Road
- Copiague: 901 Merrick Road
- East Northport: 577 Larkfield Road
- Floral Park: 2 Whitney Avenue
- Flushing: 71-18 Kissena Boulevard
- Huntington Station: 695 East Jericho Turnpike
- Kenmore: 2453 Elmwood Avenue
- Levittown: 3131 Hempstead Turnpike
- Medford: 700-43 Patchogue-Yaphank Road
- Oceanside: 3199 Long Beach Road
- Oyster Bay: 273 Pine Hollow Road
- Port Jeff Station: 593 Old Town Road
- Rochester: 1567 Penfield Road
- Smithtown: 65 Route 11
- Valley Stream: 198 West Merrick Road
- West Patchogue: 397 Sunrise Highway
Additional Rite Aid stores closing (according to A&G Real Estate Partners):
- Bronx: 1179 East 233rd Street
- Bronx: 5825-35 Broadway
- Brooklyn: 344 Avenue X
- Buffalo: 15 Arnold Street
- Buffalo: 452 Main Street
- Fairport: 6720 Pittsford-Palmyra Road
- New Windsor: 393-397 Windsor Highway
- New York: 2170 Frederick Douglass Boulevard
- Oneonta: 94 Chestnut Street
- Sayville: 101 Main Street
A&G also lists eight New Jersey stores slated for closure, mostly in central and southern New Jersey. Nationwide, Rite Aid plans to shutter 154 stores.
