2 Bay Area Rite Aid stores closing after company files for bankruptcy
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.
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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.
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As it reevaluates its portfolio of stores, these are the rest of the Rite Aid locations that are currently up for sale in California.
24829 Del Pradoin Dana Point, California
KGO-TV staff contributed to this report
