BUFFALO, N.Y. (WKBW) — Rite Aid plans to close all 178 of its locations in New York State next month, according to a letter sent to employees Monday by CEO Matthew Schroeder, obtained by 7 News.
News of the closure comes on the same day the company filed for Chapter 11 bankruptcy protection for the second time in two years. Reuters reports the company has assets and liabilities estimated to be in the $1 billion to $10 billion range.
In the letter to employees, Schroeder said the decision is based on a rapidly changing healthcare and retail landscape, saying "the dramatic downturn in the economy, potential litigation, and increased costs (including tariffs) from our suppliers and landlords have necessitated employee separations that were unforeseen, as we were actively seeing funding and pursing several alternative strategic transactions with the hope that this action could be avoided or postponed."
Rite Aid has 73 pharmacies across Western New York, including 13 in the City of Buffalo alone. The chain closed eight locations in the area last year.
Schroeder released the following statement Monday evening:
"For more than 60 years, Rite Aid has been a proud provider of pharmacy services and products to our loyal customers. While we have continued to face financial challenges, intensified by the rapidly evolving retail and healthcare landscapes in which we operate, we are encouraged by meaningful interest from a number of potential national and regional strategic acquirors. As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible. I will be forever grateful to our thousands of associates for their commitment to Rite Aid and its mission, and I thank our entire team – from store associates to corporate employees – for their dedication to our customers and our company. With their support, we have played a critical role in supporting the healthcare needs of countless Americans across the communities that we are honored to serve."
The layoffs announced Monday will begin on June 4.
