BUFFALO, N.Y. (WKBW) — Rite Aid, which filed for Chapter 11 bankruptcy Monday, is in the process of closing and selling locations across New York state, including dozens in Western New York.
In recent days, Rite Aid employees received separation notices from the company, informing them their employment could be terminated starting June 4th. However, a Rite Aid spokesperson tells 7 News the company is still in the process of selling its stores and assets and all locations will not necessarily close next month. The company says the sale process is fluid and some stores could be acquired by another company that would allow them to remain open.
In a separation letter to employees, CEO Matthew 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 could begin on June 4.
From the City of Buffalo to our rural communities, Rite Aid shoppers are very worried they might lose their pharmacy. We spoke to shoppers at three different Rite Aid locations on Tuesday. You can watch our report below and read more here.
In preparation for possible store closures, customers are switching to local pharmacies. You can watch our report below and read more here.
Editor's Note: An earlier version of this story stated all locations in New York State are closing next month. A company spokesperson says while stores are closing, Rite Aid is in the process of selling locations and assets and no final decision has been made about all stores.
