An essential retailer now faces an unexpected bankruptcy deadline after hiring A&G Real Estate to sell some of its leases.
When Rite Aid filed for Chapter 11 protection, the chain cited unprofitable stores as one of the biggest hits on its profitability.
“As the company’s restructuring process moves forward in the weeks ahead, A&G will market additional leases, with the total number depending on the outcome of ongoing negotiations between A&G and Rite Aid landlords,” the company said.
“The quickly moving plan centers on exiting certain locations to ensure optimal performance of Rite Aid’s real estate footprint.”
Rite Aid Chief Executive Jeffrey Stein said in court documents that Rite Aid had $80 million in “dead rent” costs annually that it could not shed without Chapter 11 protection.
“Those stores challenge the company’s earnings profile, turnaround initiatives, and free cash flow,” he said.
The company has been working on shedding those leases and it now faces hearings on Feb. 29 and March 1 during which U.S. Bankruptcy Judge Michael Kaplan in New Jersey will decide its fate, reports TheStreet.
In addition to selling leases, Rite Aid has been taking bids for its Elixir pharmacy benefits and discount program, while also negotiating with lenders over its $4 billion in debt.
The company has pushed the court to act faster while its unsecured lenders want the process extended so they have more time to see how they will be treated, Law 360 reported.
Rite Aid has set Dec. 14 as the bidding deadline for Elixir and the other assets it plans to sell to raise cash.
Other Economy News Today
Massive bank branches in California now unexpectedly close for 2024 according to fresh data from the Office of the Comptroller of the Currency (OCC).
“Nine additional major California bank branches are collectively scheduled to permanently shutter in 2024, as listed with the most recently updated Office of the Comptroller of the Currency (OCC) Bulletin (for the week ending November 11th),” reports Joel Eisenberg.
However, it should be noted that in the United States major banks cannot close branches until the passing of a minimum of three months following their initial OCC bulletin listing.
So far, no specific dates of the branch closures have yet been announced for any of the banks listed below.
More California bank branches are expected to close following the growing trend and rise of online banking.
Further closures are expected to appear in the next OCC bulletin.
Below are the bank branches in California closing for 2024:
- Chase. 14111 Riverside Dr, Sherman Oaks.
- Chase. 707 Broadway, STE 100, San Diego.
- Chase. 1720 Fulton St, San Francisco.
- Chase. 12555 Valley View St, Garden Grove.
- US Bank. 1309 North Chester Ave, Bakersfield.
- Wells Fargo. 5377 West Centinela Ave, Los Angeles.
- Wells Fargo. 535 South Myrtle Ave, Monrovia.
- Wells Fargo. 1705 N First St, San Jose.
- Wells Fargo. 3550 Wilshire Blvd, Los Angeles.
According to Kiplinger, Chase closed 144 branches last year while the entire industry saw more than 3,000 bank branches close down.
The-Sun reports that “many communities will be left in a “banking desert,” which means they lack access to a bank or credit union within 10 miles.
Online banking has been the primary reason as to why more and more traditional bank branches have increasingly closed down this year.
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