Rite Aid sheds more South Jersey stores as part of bankruptcy

Jim Walsh, Cherry Hill Courier-Post
Updated ·2 min read

CAMDEN – Rite Aid Corp. is continuing to close South Jersey stores as part of an ongoing bankruptcy action.

The pharmacy chain recently shuttered a store at Haddon Avenue and Marne Avenue in Haddonfield, and announced the planned closing of another on Main Street in Moorestown.

The firm is looking to sell leases for the Haddonfield site and a store on Wrightstown-Sykesville Road in Wrightstown, according to a list prepared by a bankruptcy adviser, A&G Real Estate Services.

The list also includes former Rite Aid stores at Delsea Drive and Sherman Avenue in Vineland and on Juliustown Road in Browns Mills.

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At least one former Rite Aid store is already transitioning to a new use.

An application before Camden's zoning board seeks approval to put a dollar store in a former Rite Aid at Mount Ephraim and Atlantic avenues.

Rite Aid has received approval from a bankruptcy judge to close its store on Main Street in Moorestown.
Rite Aid has received approval from a bankruptcy judge to close its store on Main Street in Moorestown.

Philadelphia-based Rite Aid is shedding stores to reduce lease expenses.

The pharmacy chain included the Moorestown store on a list of 31 sites recently approved for shutdowns in U.S. Bankruptcy Court in Camden.

It previously announced plans to close 154 stores, including South Jersey locations in Lumberton, Mantua, Mullica Hill and Mantua.

The company has said it will transfer affected workers to surviving stores “where possible."

It has more than 2,000 stores in 17 states.

Rite Aid filed for Chapter 11 bankruptcy protection from creditors on Oct. 15, three days before it posted a $1.32 billion net loss attributable to shareholders.

The deficit, equal to $24.02 per share, worsened from a year-before net loss of $441.4 million, or $8.11 per share.

A customer enters a Rite Aid store on Cooper Landing Road in Cherry Hill. The site is not among those identified to be sold or closed by the pharmacy operator.
A customer enters a Rite Aid store on Cooper Landing Road in Cherry Hill. The site is not among those identified to be sold or closed by the pharmacy operator.

First-half revenues were $11.29 billion, down 5.2 percent from a year earlier.

In addition to its sales slump, Rite Aid has been hit by rising legal costs. The firm faces court challenges over opioid prescriptions and drug-pricing practices, as well as lawsuits from employees and stockholders.

The company also noted total debt of $3.78 billion in its latest financial report.

The report said Rite Aid “is being investigated by, the federal and state governments regarding opioids and other controlled substances. The company has been cooperating with and responding to these investigatory inquiries.”

Rite Aid reached an agreement with key lenders before filing its bankruptcy action. However, the company has noted its restructuring plan requires the approval of U.S. Bankruptcy Judge Michael Kaplan in Camden.

Rite Aid’s stock closed Tuesday, Dec. 5, at 21 cents per share, down from a 52-week high of $5.13.

Jim Walsh is a senior reporter for the Courier-Post, Burlington County Times and The Daly Journal. Email: Jwalsh@cpsj.com.

This article originally appeared on Cherry Hill Courier-Post: Rite Aid is shutting stores, selling leases in several local towns