A struggling drugstore now files an unexpected bankruptcy after listing over $1.5 million in assets and over $12.2 million in liabilities.
CL Cressler Inc., which owns seven Medicine Shoppe Pharmacy locations in Pennsylvania and New York, filed for Chapter 11 bankruptcy on August 29 to reorganize its debts.
Based in Camp Hill, Pennsylvania, the company reported over $1.5 million in assets and more than $12.2 million in liabilities in its bankruptcy petition.
They noted that funds would be available for distribution to unsecured creditors.
The company’s largest creditors include Commercial Finance Group, owed $6 million; Carol and Clyde Cressler, owed $3.7 million; and Cardinal Distribution, owed over $1.2 million.
In 2023, CL Cressler generated $50.8 million in gross revenue, down from $61.5 million in 2022.
The company has not provided a specific reason for the bankruptcy filing.
Operating under the name Care Capital Management, CL Cressler owns The Medicine Shoppe Pharmacy locations in Lancaster, Newport, and Mechanicsburg, Pennsylvania, as well as Binghamton, New York.
It also oversees long-term care pharmacy divisions in Pittsburgh and Camp Hill, Pennsylvania, and Binghamton.
The Chapter 11 filing only includes these seven Medicine Shoppe locations.
Medicine Shoppe International, based in St. Louis and part of Cardinal Health, is one of the largest pharmacy chains in the U.S. with nearly 500 locations across 43 states and has not filed for bankruptcy.
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Also Read: Another Mall Clothing Retailer Now At High Risk of Bankruptcy
Other Economy News Today
A massive rental company with 34k locations now shuts down its operations after filing for bankruptcy and 22 years in business.
Users of movie rental company Redbox were left saddened after it was announced that it would be shutting down operations.
The announcement comes after the rental company’s parent company, Chicken Soup for the Soul Entertainment, filed for Chapter 11 bankruptcy.
According to court documents obtained by the Washington Post, the Connecticut-based company claimed to be one billion dollars in debt.
As a result, Redbox, which was a staple of many grocery stores including Walgreens, and CVS will be shuttered.
Many fans took to social media to express how upset they were with the loss.
“I knew it was coming, sadly,” UltraVada wrote in a post on X, formerly Twitter.
“It was inevitable,” a second person mourned.
“I knew this would happen when I heard they filed for Bankruptcy but its still sad to hear. I have a lot of fun memories of Redbox,” a third person lamented.
“I still don’t think this will be or ever be the end of physical media as we do still get remasters of some movies in 4k/Bluray.”
One person revealed that they had forgotten the rental service had existed.
Some users were not surprised by the announcement.
“Not surprised since nobody really rents videos anymore with the rise of streaming and what not,” one user admitted.
“Also kinda remember getting into a feud with them on here.”
One user also pointed out that the last remaining Blockbuster, located in Bend, Oregon, managed to outlive Redbox.
Redbox was acquired by Chicken Soup for the Soul Entertainment (CSSE) in 2022 and became one of the company’s flagship video-on-demand streaming services.
At its peak, CSSE operated more than 20,000 DVD rental kiosks across the country.
The company’s filing means that the company’s more than 1,000 employees will be laid off, per The Wall Street Journal.
It was also reported by Deadline that many employees at CSSE hadn’t received their paychecks and had medical benefits cut in late June.
Also Read: This Massive Mall Retailer Is Now Closing In California
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