ROSEVILLE, Calif. — A month after announcing plans to close about 7% of its stores in a Chapter 11 bankruptcy filing, Rite Aid plans to shutter 32 additional locations, including several in California.
In a court filing, Rite Aid announced 32 stores will be closing to join the 154 that were submitted last month.
Of the 32 locations set to close, here are the newest ones in Northern California:
- 10570 Twin Cities Rd. in Galt
- 4004 Foothills Blvd. in Roseville
The closings previously announced include:
- 5409 Sunrise Blvd. in Citrus Heights
- 1309 Fulton Ave. in Sacramento
- 2135 Cowell Blvd. in Davis
Rite Aid said in a recent Securities and Exchange Commission filing it has more than 2,200 locations in 17 states. The filing also noted the company lost about $1.3 billion in the first half of its fiscal year, more than double the $441 million it lost in the same period during the previous fiscal year.
Rite Aid said in its October bankruptcy court filing it also may close additional stores.
The company said last month going through its voluntary Chapter 11 process will help significantly cut the company’s debt and resolve litigation “in an equitable manner.”
The Philadelphia company, which is marking its 60th birthday this year, has cut costs and closed some stores as it deals with long-standing financial challenges.
The company, like its rivals, also faces financial risk from lawsuits over opioid prescriptions. Rite Aid already has reached several settlements, including one announced last year with the state of West Virginia for up to $30 million.
In March, the U.S. Justice Department intervened in a whistleblower lawsuit brought by former employees under the False Claims Act. Federal officials said in a statement the drugstore chain filled “at least hundreds of thousands” of illegal prescriptions for drugs including opioids.
Rite Aid called the government’s claims “hyperbolic” in a subsequent motion to dismiss. The company said facts alleged in the case actually showed it exceeded regulatory requirements for diversion control.
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