BUFFALO, NY (WKBW) — Drug store giant Rite Aid has filed for Chapter 11 bankruptcy as it struggles to stay afloat amid declining sales, growing competition, and hundreds of opioid-related lawsuits.
The pharmacy chain - once the largest of its kind in the country - said it would also close “underperforming” stores, although it has not specified how many of its more than 2,100 locations nationwide it could close.
Just last month, Rite Aid closed its Main Street store in Downtown Buffalo. That move followed the closure of three other locations in Western New York in May:
- 1717 Pine Avenue in Niagara Falls
- 25 Broadway in Buffalo
- 291 West Ferry Street in Buffalo
In January, the chain shuttered its North Main Street store in Jamestown.
At the time the May closings were announced, 7 News Reporter Michael Schwartz spoke with Deborah Sutton, who lives near the West Ferry Street location.
"So this is not just another store closing?" Michael asked Deborah.
"No it's not. It's our community going down," Deborah said.
Another shopper told us he'll likely have to take a bus to the next closest location about a mile away.
"I've been dealing with this Rite Aid for a long time. I think it's very lucky to be here," said Lorne Johnpier.
The chain has obtained $3.45 billion in fresh financing as it carries out a restructuring plan. In addition to struggling to keep up with rivals CVS, Walgreens and big box stores, Rite Aid has also faced growing challenges from online pharmacies. And it's facing more than 1,000 lawsuits from plaintiffs claiming the chain filled illegal prescriptions that led to opioid deaths.
In 2022, Rite Aid settled for up to $30 million to resolve lawsuits alleging its pharmacies contributed to an oversupply of prescription opioids.
On Thursday, it filed a notice to the US Securities and Exchange Commission saying it would be unable to file its latest quarterly financial report because it was looking at “strategic alternatives,” which is Wall Street speak for “considering bankruptcy.”
In that filing, the company said it expected its losses would increase significantly in the past quarter, which is saying something, considering it lost about three quarters of a billion dollars between March 2022 and March 2023 — and another $307 million between March and May this year. Over the past six years, Rite Aid has tallied nearly $3 billion in losses.
CNN contributed to this report.
