An essential retailer will now close down 178 stores after filing for Chapter 11 bankruptcy in October.
Rite Aid was the latest giant retailer to file for Chapter 11 bankruptcy on Oct. 15.
For years, the pharmacy chain has competed against CVS and Walgreens for prescription business.
“It has struggled lately against larger pharmaceutical providers such as Walmart and Costco, and it is seeing more competition from Amazon.com and a new venture, Mark Cuban CostPlus Drug Company, which offers discount prescriptions,” reports TheStreet.
The company had been struggling financially for years before the Department of Justice filed a civil lawsuit against the company in March 2023 alleging that its pharmacists inappropriately filled opioid prescriptions, contributing to the opioid epidemic by “repeatedly filled prescriptions for controlled substances with obvious red flags” and it “intentionally deleted internal notes about suspicious prescribers.”
Rite Aid on Nov. 2 filed a notice in the U.S. Bankruptcy Court for the District of New Jersey designating an additional 24 of its stores across the nation for closing.
The national pharmacy chain had already identified 154 stores for closing in its bankruptcy case.
The latest group of 24 stores listed for closing consists of eight in Michigan, including one in Detroit; four in Pennsylvania; three in Washington, including three in the Seattle metro area; three in Maryland, including one in Baltimore; two in New Jersey; and one each in California, Delaware, New York and Ohio.
Rite Aid had already filed for an interim order for the first 154 store closings on Oct. 17, which Judge Michael B. Kaplan signed.
The order will be final, and all 178 stores can be closed if the court doesn’t receive an objection by Nov. 9.
Also Read: A US Company Now Declares An Unexpected Bankruptcy
Other Economy News Today
Massive California banks are now closing according to new reports, including several Wells Fargo branches and one BMO branch.
This week, 5 big bank branches are closing in California, a trend that is only expected to grow in the years to come.
Why are we seeing traditional branches across America collapse?
The rise of online banking has greatly impacted traditional banks, causing the entire industry to pivot and adapt to the ever growing digital world.
The following bank branches are expected to shutter in California soon:
- Wells Fargo. 303 2nd St, San Francisco
- Wells Fargo. Hores Parkway, Redwood City
- Wells Fargo. 305 W. Sepulveda Blvd, Torrance
- Wells Fargo. 7950 West Sunset Blvd, Los Angeles
- BMO Bank. 6055 East Washington Blvd, City of Commerce
“All over California, 277 bank branches have closed so far this year, second only this century to 2020, when 325 branches closed.
Branch openings are a much rarer occurrence: Only eight have occurred statewide this year,” reports Governing.
A recent report states that Wells Fargo plans to lay off approximately 525 of its employees based in Columbia, South Carolina, and close the bank’s corporate office there by June 30, 2024.
“Wells Fargo leaders are working to provide up-to-date facilities with modern workspaces and technology to create a more collaborative work environment that is a better employee experience,” Wells Fargo wrote in a notice.
“At the same time, we need to concentrate Wells Fargo real estate investments in fewer locations or reduce space in existing real estate,” the bank said.
Bank of Montreal (BMO) is cutting 228 jobs in California’s Bay Area next month, as the Canadian lender continues to shed positions following its February acquisition of San Francisco-based Bank of the West.
Also Read: Florida Now Has Massive Departures As Residents Leave State
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