A massive company now plans to sell a total of 92 stores after filing for Chapter 11 bankruptcy in October.
Rite Aid plans to sell an additional 92 store leases in eight states as it works to shrink its physical footprint as part of its ongoing bankruptcy restructuring process.
A&G Real Estate Partners said Monday it will offer the retail leases, with the bankruptcy court’s approval, for private sale to help Rite Aid reduce its debt, after the retailer filed for Chapter 11 on Oct. 16.
The offering is in addition to 78 leases and 21 stores and land parcels that went up for sale in mid-October as the retailer restructures in bankruptcy, reports RetailDive.
“Rite Aid is continuing to assess its property portfolio and will close additional stores to optimize its real estate footprint and improve its overall financial performance,” A&G Real Estate Partners said.
Rite Aid is one of the largest pharmacies in the U.S. However its big physical footprint – about 2,100 stores at the time of its Chapter 11 filing – contributed to the company’s operational and financial difficulties, says RetailDive.
The retailer said in court documents that its debt load had reached nearly $4 billion.
Bankruptcy enables the company to reduce its “sub-optimal retail footprint” and potentially eliminate about $80 million annually in “dead rent” costs, according to CEO and Chief Restructuring Officer Jeffrey Stein.
So far, Philadelphia-based Rite Aid is offering 17 leases in California; six in Maryland; 22 in Michigan; seven in New Jersey; 11 in New York; two in Ohio; 17 in Pennsylvania; and 10 in Washington.
“In consultation with A&G, Rite Aid is working to strengthen its overall financial position by reducing its rent expenses and optimizing its portfolio,” Andy Graiser, co-president of A&G, said.
Other Economy News Today
A massive company now announces its second round of layoffs this year with employees fearing a third round before the year ends.
“Accounting giant Grant Thornton, which has its global headquarters in Chicago, Illinois, has announced its second wave of layoffs for 2023,” reports Ash Jurberg.
“The company, the seventh largest accounting network in the world by combined fee income, will be cutting 200 staff.
In May, 300 staff were laid off, meaning 6% of its total workforce in the United States has been laid off this year.”
The company announced the following statement:
“The staffing changes reflect pockets of underutilization in limited business segments, and specialty areas that the firm is exiting due to market trends. We continue to invest in higher-growth areas of the business to even better serve our clients,” said Grant Thornton.
Interestingly enough, the firm recently announced record revenue.
“The layoffs sent shock waves throughout the firm since it had just announced record revenues for the fiscal year ending July 31 of $2.4 billion after the firm’s round of cuts,” says Fox Business.
Some employees told Fox Business they believe the company is preparing for significantly tougher times ahead after the Fed announced it will continue to keep monetary policy tight to combat inflation for the foreseeable future.
“Many economists are predicting a recession in 2024.”
People at Grant Thornton who spoke to Fox Business said the cuts are more ominous and signal management’s fear that a recession isn’t just possible but a likelihood.
Employees also told Fox Business that they expect another round of layoffs before year’s end.
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