A Popular Retailer Is Now Closing Its Doors
A popular retailer is now closing its doors as it ceases operations in Pennsylvania amidst bankruptcy concerns.
“Struggling pharmacy chain Rite Aid is set to close three more of its locations in Pennsylvania.
Rite Aid was founded in Pennsylvania in 1965 and is headquartered in Philadelphia.
They are preparing to file for bankruptcy after incurring $ 3.3 billion in unpaid debt,” reports Ash Jurberg.
Several big retailers have begun to shutter, and many states experiencing an increase in layoffs.
WSJ says, “The drugstore chain is preparing a chapter 11 filing within weeks.”
Rite Aid operates over 2,330 stores in 17 U.S. states, but this number is declining. The chain recently closed a raft of stores – 145 closed in 2022, and 25 have closed this year.
The following three Rite Aid locations will close in Pennsylvania this month:
- The Rite Aid in the Lehigh Shopping Center in Bethlehem is closing on Tuesday, October 17. Items are between 50% and 75% off.
- The Moon Township Rite Aid will close on October 25, and the store will offer up to 75% of goods to clear stock.
- The Rochester Rite Aid at 351 Brighton Ave. will close on October 18 and has select merchandise up to 75% off.
“Aging baby boomers have been a significant tailwind for the company’s retail pharmacy sales; however, Rite Aid’s front-end sales are slowing because of competition and theft,” reports TheStreet.
“Non-pharmacy same-store sales open at least one year slipped 4.4% year over year in the second quarter, even as the company reported a $9 million increase in retail store shrink, the industry term for losses due to theft and unaccounted inventory.
Rite Aid is also suffering because rising interest rates have caused variable interest on its debt to balloon.
Also Read: A US Company Now Declares An Unexpected Bankruptcy
Other Economy News Today
Tennessee workers have now been left in turmoil after massive layoffs affected 33,000 employees this year.
Yellow Corp, a Tennessee-based trucking company entered bankruptcy and immediately closed operations across the United States.
As a result, 33,000 workers lost their jobs in the biggest mass layoff in the United States since 2020, reports Ash Jurberg.
Many of these workers have been unable to find jobs while still being owed unpaid vacation and sick leave, an unfortunate result of the company’s collapse.
WSWS spoke with several ex-Yellow staff members who are still severely impacted by the events that unfolded this year.
“I have a friend. He is owed 33 days, which is almost $7,000. And he is not working.
We gave over 10 years of 15 percent of our pay every week to this company. We gave up part of our pension for 10 years, and at the end, they got a $700 million bailout during COVID from the United States government, and they still put us out of business.
Out of all of the guys I know, maybe seven or eight got jobs doing what we did. Most of them have to go doing other odd jobs or changing their craft because they can’t get in the door anywhere, says ex-driver Allen Buyers.
“I am having a terrible time finding a job. However, it is my age that comes up more than anything. Insurance won’t cover a driver past 64, is what I have been told three times now,” says another ex-Yellow Corp worker.
“The worst thing is our insurance wasn’t paid and was cut off immediately, and any accrued vacation time wasn’t paid. But job seekers are having a tough time finding suitable or comparable work… In Memphis, we hear nothing from the union local. Nothing at all.”
Also Read: Customers Are Now Unable To Access Money From A Bank
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