On Sunday, Rite Aid Corporation announced it’s filed for Chapter 11 bankruptcy protection. This is a major step the company is taking in its “business transformation,” the company said in a statement.
It could also mean more Rite Aid stores in Schuylkill County could close for good.
Rite Aid is clear in saying that it’s not going out of business, rather moving to the make the company more efficient in its operations. Under the court-supervised process, Rite Aid aims to get its finances in order, reduce its debt, and pave the way for future growth and expansion.
The move to file for bankruptcy comes after Rite Aid reached an initial agreement with some of its senior secured noteholders. This agreement, if finalized, will play a critical role in reshaping the company’s financial landscape.
Despite the ongoing restructuring, customers shouldn’t expect any immediate changes in their shopping experience. Rite Aid emphasized its commitment to continuing its operations both in stores and online. The company reiterated its dedication to delivering leading healthcare products and services to the nearly one million customers it serves every day.
What Will Happen to Rite Aid Stores in Schuylkill County?
A noteworthy aspect of this process is Rite Aid’s plans related to its store locations. The court’s oversight will enable Rite Aid to accelerate its store “footprint optimization plan”.
This could mean opening new stores in more strategic locations, renovating existing ones, or closing underperforming outlets.
We’ve seen that Rite Aid can and will close stores it considers underperforming. In September, Rite Aid closed its downtown Pottsville location after decades of operation.
A notice on the front door of the former Center Street store says customer prescriptions have moved to the Rite Aid at Pottsville Park Plaza, at the intersection of Route 61 and Mill Creek Ave.
Rite Aid operates several other stores in Schuylkill County and it’s definitely possible some of those could go the way of the downtown Pottsville location, too, if they’re considered underperforming or not part of the company’s future plans.
Those locations include:
- Mahanoy City