- Major pharmacy chain Rite Aid said it has filed for bankruptcy and gotten $3.45 billion in fresh financing as it carries out a restructuring plan
- Rite Aid said it would also close “underperforming” stores. Several in the Lehigh Valley are affected
- In 2022, Rite Aid settled for up to $30 million to resolve lawsuits alleging its pharmacies contributed to an oversupply of prescription opioids
PHILADELPHIA — Pharmacy chain Rite Aid said late Sunday that it has filed for bankruptcy and now is focused on a restructuring plan that will close underperforming stores — including several in the Lehigh Valley.
About 500 stores are affected nationwide, according to published reports.
The company recently closed a store at 361 S. Cedar Crest Blvd., Allentown, and another is scheduled to shutter this week at 2178 Union Blvd., Bethlehem, on the border of Allentown's east side.
Other locations at 25th Street in Palmer Township and Northampton Street in Easton closed in September.
Area locations still open
These are the remaining Lehigh Valley-area locations still operating:
- 7719 Main St., Fogelsville
- 6822 Hamilton Blvd., Allentown
- 27 N. 7th St., Allentown
- 1628 S. 4th St., Allentown
- 3145 Hamilton Blvd, Allentown
- 1650 N. Cedar Crest Blvd., Allentown
- 1328 Chestnut St., Emmaus
- 1620 Main St., Northampton
- 2108 MacArthur Road, Whitehall Township
- 110 Main St., Hellertown
- 104 E. 3rd St.,, Bethlehem
- 1781 Stefko Blvd., Bethlehem
- 102 Easton Road, Nazareth
About 2,100 pharmacies in 17 states will be closed, Rite Aid said.
What led to bankruptcy?
In 2022, Rite Aid agreed to a $30 million settlement to resolve lawsuits alleging pharmacies contributed to an oversupply of prescription opioids.
The company has taken on a financial restructuring plan as a result, and bankruptcy filing was part of that process.
The plan will “significantly reduce the company's debt” while helping to “resolve litigation claims in an equitable manner,” Rite Aid said.
In March, the U.S. Justice Department filed a complaint against Rite Aid, alleging it knowingly filled hundreds of thousands of unlawful prescriptions for controlled substances over a five year period.
It also accused pharmacists and the company of ignoring “red flags” indicating the prescriptions were illegal.
As it proceeds through bankruptcy, Rite Aid said it was arranging for payment of wages and other costs as usual, even as it reported that its revenue fell to $5.7 billion in its last fiscal quarter, down from $6 billion a year earlier.
Information from the Associated Press was used in this report.
