Rite Aid is set to close 154 stores in more than ten states in the wake of its recent filing for bankruptcy court protection, reports The New York Times. The closings are meant to help the drug chain save money on rent and improve its financial outlook.
Most of the shuttered locations are located in Pennsylvania, California, and New York; Pennsylvania alone will lose about 40 stores.
On Sunday, Rite Aid appointed Jeffrey Stein as its new CEO, chief restructuring officer, and board member. Stein said he has “tremendous confidence in this business and the turnaround strategy that has been developed in recent months.” He also said the chain would use the bankruptcy process to emerge as “a stronger company.”
The court filing comes after a steady decline in sales coupled with facing more than 1,000 lawsuits accusing the company of filling illegals painkiller prescriptions.
The chain currently has more than 2,000 stores across 17 states. Full Story (Subscription Required)
Related: Rite Aid Files for Bankruptcy; Ellwood Thompson's Market Sold