RITE Aid is closing four more stores in addition to mass closures as it rethinks its business strategy.
The four store closures are located in Pennsylvania, Philadelphia, Pottsville, South Whitehall Township and Wayne.
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The shutters were added to the latest round of its bankruptcy proceedings, according to court documents, released by the ABC affiliate. WHTM on Friday.
The closure in Pottsville is the second closure in the country in 2024, WHTM reported.
Rite Aid filed for Chapter 11 bankruptcy on October 15, 2023, with the aim of closing struggling stores.
It has since closed more than 200 stores since filing for bankruptcy and handed over to the U.S. Bankruptcy Court a list of 154 additional stores in late October, per Forbes.
There have been a few dozen more closures added since the start of 2024.
Rite Aid announced the closure at its Michigan location near northeast Detroit on June 13.
This would allow you to minimize your rental costs and become financially stronger.
The pharmacy once operated in 2,000 locations in 17 states.
Rite Aid released a statement when it said it would close stores to explain its new bankruptcy business plan
“Rite Aid regularly evaluates its retail presence to ensure we are operating efficiently while meeting the needs of our customers, communities, associates and business overall,” the statement said.
“In connection with the court-supervised process, we have notified the Court of certain underperforming stores that we are closing to further reduce rental expenses and strengthen overall financial performance.”
Rite Aid isn’t the only store that has recently faced a financial crisis.
CLOSINGS ONLY FROM 99 CENTS
Popular discount store 99 Cent Store was recently forced to close all 371 of its stores
99 Cent stores are located in California, Nevada, Texas and Arizona.
A dedicated fan of Rite Aid and 99 Cents Only announced the closure of X, formerly known as Twitter.
“First we lost Rite Aid and then 99 Cent Stores, I wonder who will be next?” Tybudd Lewis (@TybuddLewis818) tweeted.
People didn’t accept the 99 cents, just the mass closures very easily.
“This is truly the worst day”, Crysona Cora he said on X about 99 cents only.
“I’m sad to see this end. The 99 Cents Store has been around for as long as I can remember.
“It helped me a lot, my little brother and my mother invested a lot at that time and still buy there. This sucks.”
Another buyer, Victor Barrios, said, “This needs to stay open,” according to the Los Angeles Times.
“I make good money and buying here helps me. But imagine if you were on WIC? If you are on Social Security?
99 Cent Only interim CEO Mike Simonic said in a statement that it was an extremely difficult decision to close the business.
The rise in popularity of 99 Cents Only stores
99 Cents Only stores had been a staple in the western United States since the first store launched in the 1980s. It all started with an entrepreneur who hoped to redefine the dollar store concept.
In 1982, David Gold founded 99 Cents Only Stores in Los Angeles, California, with the aim of revolutionizing the concept of dollar stores.
Gold envisioned his stores as havens that offer customers convenient, high-quality products at affordable prices, similar to Trader Joe’s founding spirit.
Marketed as an “upscale, deep-discount retailer”, the company had a diverse range of name-brand products and general merchandise, emphasizing convenience and value.
99 Cents was known for its wide selection, from party supplies to household items to fresh groceries, as well as being a one-stop shop with affordable prices.
Despite its long-standing commitment to selling items for 99 cents, economic pressures forced the company to adjust its pricing model in 2008.
In 2011, 99 Cents Only Stores underwent a $1.6 billion acquisition by private equity firm Ares Management and the Canada Pension Plan Investment Board.
At its peak, the chain employed approximately 14,000 people across its 371 locations, reflecting its widespread presence in the retail landscape.
Simonic said: “It was an extremely difficult decision and not the outcome we hoped or hoped to achieve.”
99 Cents Only closed completely due to “the unprecedented impact of the COVID-19 pandemic, changing consumer demand, increasing levels of markdown, persistent inflationary pressures and other macroeconomic headwinds,” Simoncic said.
Adding these difficulties “enormously harmed the company’s ability to operate.”
The company “engaged in an extensive analysis of all available and credible alternatives to identify a solution that would allow business continuity”.
This story originally appeared on The-sun.com read the full story
