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New Cumberland Rite Aid added to closure list
Cris Collingwood//January 3, 2024//
Rite Aid
New Cumberland Rite Aid added to closure list
A Rite Aid in New Cumberland is among the latest store closings announced by the company.
The store at 105 Old York Road will close Jan. 11, according to a Rite Aid spokesperson.
“Rite Aid regularly assesses its retail footprint to ensure we are operating efficiently while meeting the needs of our customers, communities, associates and overall business,” the company said in a statement. “In connection with the court-supervised process, we notified the Court of certain underperforming stores we are closing to further reduce rent expense and strengthen overall financial performance. At this time, we have not made or confirmed any decisions on additional specific store closures as part of our financial restructuring process.”
Declining sales and legal battles resulting from opioid-related lawsuits caused Rite Aid to declare bankruptcy. The company has reportedly received $3.45 billion in new financing from its lenders to help it through the Chapter 11 process.
A total of 154 Rite Aid stores are closing nationally, many of them in Pennsylvania, New York, and California.
In October 2023, Rite Aid disclosed in a court filing in U.S. Bankruptcy Court in New Jersey that stores in Allentown, Bethlehem, Hanover, and Mechanicsburg would close. The filing listed $8.6 billion in total debts and $7.6 billion in assets.
“The decision to close a store is not one we take lightly,” the spokesperson said. “The company, with the assistance of its advisors, carefully considers various factors in its decision-making, including business strategy, lease and rent considerations, local business conditions and viability, and store performance.”
The company said it will make every effort to ensure customers have access to pharmacy-based health services, whether at another Rite Aid or another pharmacy.
Employees will be offered jobs at other Rite Aid locations. The spokesperson said about 75% of employees have accepted transfers to date.
Rite Aid, which was headquartered in Camp Hill for years, moved its headquarters to Philadelphia’s Navy Yard district in 2022.
