In the ongoing bankruptcy proceedings of Rite Aid, the company has expanded its list of store closures, marking the shut down of 16 additional locations in California. This move follows the initial Chapter 11 bankruptcy filing in October, where Rite Aid announced the closure of 154 stores nationwide, including 31 in California.
Facing financial challenges, the pharmacy and retail chain initially revealed plans to close 154 stores, with 31 in California. Subsequent developments in November and December disclosed an additional 30 closures, and recent filings with the U.S. Bankruptcy Court for the District of New Jersey indicate that 55 more locations are set for closure as of January.
The majority of the newly added closures in California are concentrated in Southern California, impacting communities such as Lakewood, San Diego, Needles, North Hollywood, Fontana, Los Angeles, La Crescenta, Hemet, Westminster, Studio City, Tustin, Redlands, Moreno Valley, and Simi Valley.
In the Bay Area, Rite Aid’s store in Livermore is among those slated for closure, along with a store in Susanville, a rural town in Northern California’s Lassen County.
Rite Aid’s Chapter 11 bankruptcy protection filing in October was triggered by declining sales, opioid-related lawsuits, and a significant debt burden. As the company navigates these financial challenges, the decision to close additional stores is part of its strategy to streamline operations and ensure a more sustainable future.