Rite Aid Closing Another MD Location As Bankruptcy Looms

MARYLAND — Struggling pharmacy chain Rite Aid plans to close an additional 31 stories, including one in Maryland, as it prepares to file Chapter 11 bankruptcy, according to reports citing a recent court filing.

Rite Aid’s bankruptcy comes amid slumping sales and heavy debt from an opioid lawsuit filed by the Justice Department in March that accuses the company of filling prescriptions for large quantities of opioids “that had obvious, and often multiple, red flags indicating misuse.”

In October, the company announced it planned to close at least 150 stores, including six in Maryland.

The newest store in Maryland slated for closure is located at 1301 E. State St. in Delmar on the Eastern Shore, according to the filing obtained by Fast Company.

The six Maryland stores announced for closure in October included:

• 728 East Pulaski Highway, Elkton
• 5624 Baltimore National Pk., Baltimore
• 5804 Ritchie Highway, Baltimore
• 7501 Ritchie Highway, Glen Burnie
• 7967 Baltimore Annapolis Blvd., Glen Burnie
• 5 Bel Air South Pkwy. Suite 1347, Bel Air

Other states affected by the newest closures include New Jersey, California, Connecticut, Michigan, Nevada, New York, Ohio, Oregon, Pennsylvania, Virginia and Washington, according to Fast Company.

In a statement to USA Today, Rite Aid spokesperson Catherine Carter said the stores slated for closure have been underperforming and will be closed "to further reduce rent expense and strengthen overall financial performance."

When announcing the first round of closures in October, the company said prescriptions of customers of the affected stores would be transferred to a nearby Rite Aid or other drug store “so that there is no disruption of service." People who work at the stores will also be transferred to other Rite Aid locations where possible, the company said.

The closures come as drug store chains, including rivals CVS and Walgreens, have settled similar lawsuits, but were better positioned financially. But even they are struggling and closing in a tough environment for national drug store chains as Amazon and big-box retailers like Walmart, Target, Costco and others make it more convenient to have prescriptions filled, CNN reported.

Rite Aid said it had secured $3.45 billion in financing and debt reduction agreements that will help it stay afloat through the court-supervised bankruptcy. The company will sell off its Elixir Solutions, its prescription benefit provider.

Additionally, the agreement settles outstanding lawsuits against the company for allegedly filing unlawful opioid prescriptions, one of the exacerbating factors contributing to Rite Aid’s bankruptcy.