Rite Aid files for bankruptcy: What does it mean for NJ customers?

😷 Rite Aid has filed for bankruptcy

😷 The pharmacy chain has faced financial challenges recently

😷 What does this mean for NJ customers?

For the second time in less than two years, Rite Aid has filed for bankruptcy.

The Philadelphia-based pharmacy chain filed voluntary Chapter 11 proceedings on Monday, May 5, in the U.S. Bankruptcy Court of New Jersey, intending to close or sell all of its remaining stores.

According to court documents, Rite Aid will “continue to engage in a marketing and sales process to identify the highest or otherwise best offer for all, substantially all, or a portion of the Rite Aid Companies’ assets, and initiate store closing sales to implement store closings for the Rite Aid Companies’ remaining retail store and distribution center assets.”

The pharmacy chain plans to use the Chapter 11 process to pursue a sale of its prescriptions, pharmacy, and front-end inventory, and other assets. Any assets the company does not sell through this process will no longer be owned or operated by Rite Aid.

“After considering all alternatives to address these issues, the only viable path forward is to once again commence Chapter 11 proceedings to pursue a sale of our prescriptions, pharmacy, and front-end inventory, and other assets,” CEO Matt Schroeder said.

Schroeder said Rite Aid has generally stopped purchasing non-essential goods and services.

In a letter to customers, Rite Aid said one of its top priorities during the bankruptcy process is to ensure that they have uninterrupted access to their pharmacy needs.

The majority of Rite Aid stores will remain open for the next few months, allowing customers to access pharmacy services, prescriptions and immunizations.

The company is also working to transfer customer prescriptions to other pharmacies.

On its website, it reads that Rite Aid reward points are no longer being issued for qualifying purchases. Also, beginning June 5, Rite Aid will no longer honor gift cards or accept any returns or exchanges.

Customers can find the latest information about stores open in their area here.

There are 60 Rite Aid stores in New Jersey.

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