2 Bay Area Rite Aid stores closing after company files for bankruptcy

ByParija Kavilanz
Thursday, October 19, 2023
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SAN FRANCISCO -- Rite Aid, which had filed for Chapter 11 bankruptcy protection, is now preparing to shed almost 100 stores nationwide as part of its restructuring efforts.

According to court filings, two Bay Area stores closing are located in Santa Clara County.

  • 20572 Homestead Road in Cupertino, California
  • 2620 El Camino Real, Santa Clara
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    The first tranche of stores to be sold - both leased and owned - is located in twelve states, according to A&G Real Estate Partners, which is advising the drug store chain on its real estate portfolio. The states include California (17 stores), Maryland (4), Michigan (16), New Jersey (8), New York (17), Ohio (4), Oregon (2), Pennsylvania (17), New Hamphire (2) and Washington (10), Alabama (1), Idaho (1).

    The writing has been on the wall for some time for Rite Aid, the third-biggest standalone pharmacy chain in the US, as the entire drug store retail sector struggles to compete with Amazon and big-box chains like Walmart, Target and Costco moving deeper into the space and offering more customer-friendly alternatives to the nationwide pharmacy chains.

    Compounding its problems were legal troubles stemming from accusations of filing unlawful opioid prescriptions for customers.

    RELATED: Rite Aid, which operates more than 2,200 stores nationwide, files for bankruptcy

    Rite Aid is in much worse financial shape than its competitors. Over the past six years, Rite Aid has tallied nearly $3 billion in losses.

    While it has secured $3.5 billion in financing and debt reduction agreements from lenders to keep the company afloat through its bankruptcy, Rite Aid said it would accelerate store closures and sell off some of its businesses, including prescription benefit provider Elixir Solutions. Bankruptcy could also help resolve the company's legal disputes at a vastly reduced cost.

    MORE: Target closing 3 Bay Area stores due to retail theft, company announces

    Target says it is closing nine stores across four states due to retail theft including three in the Bay Area.

    As it reevaluates its portfolio of stores, these are the rest of the Rite Aid locations that are currently up for sale in California.

  • 920 East Valley Blvd in Alhambra, California
  • 571 Bellevue Road in Atwater, California
  • 3029 Harbor Blvd. in Costa Mesa, California
  • 139 North Grand Ave. in Covina, California
  • 24829 Del Pradoin Dana Point, California

  • 7859 Firestone Blvd. in Downey, California
  • 8509 Irvine Center Drive in Irvine, California
  • 15800 Imperial Hwy. in La Mirada, California
  • 30222 Crown Valley Pkwy. in Laguna Niguel, California
  • 4046 South Centinela Ave. in Los Angeles, California
  • 499 Alvarado St. in Monterey, California
  • 1670 Main St. in Ramona, California
  • 1309 Fulton Ave. in Sacramento, California
  • 901 Soquel Ave. in Santa Cruz, California
  • 19701 Yorba Linda Blvd. in Yorba Linda, California
  • 25906 Newport Road in Menifee, California
  • KGO-TV staff contributed to this report