Official: An essential retailer is now closing almost all locations after the company claims to being ‘driven out’, sources report.
An independent pharmacy has been driven to close driving customers elsewhere, reports The-Sun.
Mainline Pharmacy made the decision to close nearly all of its stores citing loss of profit caused by pharmacy benefit managers.
They will be closing a total of nine stores by March 11, leaving one location open in Somerset Pennsylvania and continuing to service long-term care facilities out of another pharmacy with a different business model.
The closing announcement was made on Facebook.
“It is with a heavy heart that we announce the closure of your local pharmacies,” Mainline said.
“This decision was not made lightly, and we understand the impact it may have on you and your loved ones.”
Mainline opened its first store in 1980 and began to expand year after year, the goal was to stay a staple in the community.
“We wanted to keep stores in the community,” said John Pastorek, Mainline Pharmacy owner and director of pharmacies.
But there is a reason that their goal has become unobtainable.
According to the company, pharmacy benefit managers (PBMs) are third-party insurance bodies that have been underpaying the pharmacy for medications, meaning they do not turn any profit needed to stay in business.
“We’ve been sadly driven out of business by pharmacy benefit managers,” Pastorek said.
The Tribunal Democrat reported that for a popular diabetic injectable, Mainline spends $2,858; reimbursement from pharmacy benefit managers is $2,436 equating to a $422 loss for the business.
“They pay us way less than what we pay for medications from our wholesaler,” Pastorek said.
He further attributed this issue with PBMs to the closings of other independent pharmacies.
“That’s why there are barely any independent pharmacies across the country,” he claimed.
Since the start of the year, Mainline has filled 17,574 prescriptions at a loss, totaling $350,000 in profit losses.
“We are sick about it,” Pastorek said of the decision to close.
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Also Read: A Cosmetics Company Now Makes Painful Store Closures
Other Economy News Today
Another popular restaurant now declares an unexpected bankruptcy after closing several chains in Chicago, Arizona, and California.
Etta Collective, a small chain that operates multiple concepts in Chicago, Arizona and Los Angeles has closed several restaurants and has filed for Chapter 11 bankruptcy, reports TheStreet.
The chain closed its namesake restaurant in Los Angeles last year and abruptly shut down a Chicago-area restaurant, Sophie’s, earlier this year.
Now, after defaulting on a $2.5 million loan, the company’s owner, restaurateur David Pisor, has officially made the bankruptcy filing.
Pisor’s Etta collective runs a number of different concepts including its namesake restaurants, a bakery cafe, Alston House, a high-end steakhouse, and Kari, an upscale sushi concept.
The chain also has Marilyn’s, a planned concept that has not opened.
Pisor has said that the bankruptcy filing was made in order to help the company continue to operate.
“We have made a proactive decision to commence this strategic reorganization process with the cooperation of our lender, who has agreed to work with us so that we can come out of this process even stronger than before,” Restaurant Business reported.
The bankruptcy process could include a sale of the brand as the investor John Leahy has emerged as a bidder for the company’s assets.
“Our aim is to best position the Etta brand for future success,” Pisor said in a statement.
“By filing for protection under Chapter 11, we will be able to restructure our financial position while continuing our daily operations and keeping our locations open.
As has already happened in our Scottsdale location, we predict that we will emerge stronger both operationally and financially.”
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Also Read: This Massive Mall Retailer Is Now Closing In California
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