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Rite Aid announced that it will close all its stores in the Hudson Valley as part of a Chapter 11 bankruptcy reorganization plan. This marks the pharmacy chain's second bankruptcy filing in two years. The closures will affect stores in communities such as Kingston, Ardsley, Carmel, Brewster, and Valley Cottage.
The company plans to sell its assets and is in discussions with potential buyers. However, any sold stores will no longer operate under the Rite Aid name. According to a statement from Rite Aid, customers can still access pharmacy services during the transition, and the company is working to transfer prescriptions to other pharmacies.
Starting June 5, Rite Aid will no longer accept gift cards, returns, or exchanges. Employees will continue to receive pay and benefits during the process, but all will eventually be laid off. CEO Matthew Schroeder expressed gratitude to the employees for their dedication and highlighted the challenges faced by the company, including financial struggles and increased competition from other retailers like CVS, Walmart, and Amazon.
Rite Aid's previous restructuring attempt in 2023 failed to reduce its debt significantly, leading to this second bankruptcy filing. The company has secured $1.94 billion in new financing to support operations during the sale process.