Rite Aid will shed some South Jersey stores amid bankruptcy filing

Celeste E. Whittaker, Cherry Hill Courier-Post
Updated ·1 min read

Rite Aid has filed for Chapter 11 bankruptcy protection and will shed 154 stores nationwide, including four in South Jersey.

Rite Aid sought protection from creditors as it faces soaring losses, slumping sales and lawsuits over its accused role in fueling the opioid epidemic by illegally filling prescriptions for painkillers, a USA Today story said.

The South Jersey sites impacted include stores in Lumberton at Lumberton Plaza on Route 38; in Williamstown at Black Horse Pike and Corkery Lane; in Mantua on Bridgeton Pike at Berkley Road; and in Mullica Hill at the Amish Farmers Market on Swedesboro Road.

The company previously said it would transfer patients’ prescriptions to nearby locations.

With 45,000 employees, Rite Aid said in a media release that it also expected to give workers at closing stores the option to transfer to other locations “where possible”.

Rite Aid closures hit New Jersey Rite Aid bankruptcy: These are the NJ stores that are closing

The Philadelphia-based company recently reported a net loss of $306.7 million for the first quarter of its fiscal year.

That followed a combined net loss of $1.28 billion over the previous two fiscal years.

“Rite Aid regularly assesses its retail footprint to ensure we are operating efficiently while meeting the needs of our customers, communities, and associates,” the company said in a statement provided to the Courier Post.

A previously closed Rite Aid is on Route 38 near Chapel Avenue in Cherry Hill.
A previously closed Rite Aid is on Route 38 near Chapel Avenue in Cherry Hill.

“In connection with the court-supervised process, we intend to close certain underperforming stores to further reduce rent expense and strengthen overall financial performance.”

The company also said it had received a commitment for $3.45 billion in new financing to support business operations.

Celeste E. Whittaker is a news features reporter for the Courier Post, Daily Journal and Burlington County Times. The South Jersey native started at the CP in 1998 and has covered the Philadelphia 76ers, college and high school sports and has won numerous awards for her work. Reach her at 856.486.2437 or  cwhittaker@gannettnj.com.

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This article originally appeared on Cherry Hill Courier-Post: Rite Aid will close some South Jersey stores after bankruptcy filing