An unexpected essential retailer now confirms 30 new closures across two different states after being hit by financial troubles.
Rite Aid is permanently closing down a total of 16 locations in Ohio and 14 in Michigan.
The company has been hit hard by its financial and legal troubles, per The US Sun.
The chain lost 700 stores during this period and currently has 1,300 locations remaining.
These store closures were widespread as the company even pulled out of some states completely.
Rite Aid has reportedly planned to close its stores in Ohio and Michigan, according to an inside source.
“They had a conference call on Monday and they let us know that the corporation made the decision to close the stores in Ohio and Michigan,” the pharmacist told the Ohio Capital Journal.
“There are a few exceptions, a onesie, twosie here and there.
They’re asking us to work the rest of the days until our stores close.”
One customer of 40 years shared her strong feelings about her local Rite Aid’s closure.
“I’ve been a 40-year customer/patient, I’m shaking. I’m so sorry this happened,” wrote one on Reddit.
It comes as the Pennsylvania-based chain filed for Chapter 11 bankruptcy in October 2023.
However, U.S. Bankruptcy Judge Michael Kaplan approved Rite Aid’s proposed bankruptcy restructuring plans on June 28, according to Reuters.
The hearing took place in a courthouse in Trenton, New Jersey.
This plan would cut the pharmacy chain’s debts down by $2 billion.
Rite Aid would also allow the company to hand over control to a group of lenders.
Part of the restructuring plan would hand $47.5 million to junior creditors.
These people have included individuals and local governments that have sued the chain over its alleged role in the opioid crisis.
The chain has said it hopes to exit bankruptcy in around a month from now.
This comeback would be financed by a $2.55 billion pot provided by lenders.
Rite Aid’s attorney, Aparna Yenamandra, argued before the ruling that this plan could save 28,000 jobs.
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Also Read: An Unexpected Retailer Is Now Closing All Stores in Illinois
Other Economy News Today
An unexpected restaurant now abruptly closes 7 locations in one state after revealing plans to shutter a total of 36.
TGI Fridays is closing a total of seven restaurants in one state as part of the company’s ongoing growth strategy.
This comes after the chain abruptly closed 36 locations across 12 states in at the beginning of the year, per The-Sun.
The restaurant chain will pull the plug on seven locations across the state of New Jersey in the coming weeks.
Today, Fridays will welcome in famished diners at its location in Brick for the final time.
“As we continue along our path of transformation to revitalize the Fridays brand and implement a long-term growth strategy, we see a bright future for TGI Fridays,” said Weldon Spangler, CEO of TGI Fridays earlier this week.
“We are at the helm of a pivotal moment that will allow us to explore boundless advancement, expansion, and innovation to keep delivering ‘That Fridays Feeling’ that our fans know and love.”
Before the closures, TGI Fridays had about 270 US locations, according to the company’s website.
“As part of the store closures, TGI Fridays is offering more than 1,000 transfer opportunities, which represents over 80% of total impacted employees,” the company previously said in a statement.
“Our top priority has always been delivering a superior experience for each and every TGI Fridays guest, and we’ve identified opportunities to optimize and streamline our operations to ensure we are best positioned to meet – and exceed – on that brand promise,” said Ray Risley, US president and chief operating officer, in the release.
Eight other locations were sold to former CEO Ray Blanchette, a longtime stakeholder who will acquire the previously corporate-owned restaurants.
The sale comes as major changes have been made to the brand’s leadership, including the news of Weldon Spangler being made CEO.
“As we continue along our path of transformation to revitalize the Fridays brand and implement a long-term growth strategy, we see a bright future for TGI Fridays,” said Spangler in a statement.
Also Read: Retirees Will Now Receive More Money For Social Security
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