Rite Aid customers in Los Angeles, Orange, and Ventura counties are facing the closure of their neighborhood stores as part of the pharmacy chain’s bankruptcy process. This closure affects 154 locations in 15 states, with California having the highest number of closures, specifically 31 stores, according to recent court documents filed in Rite Aid’s Chapter 11 bankruptcy proceedings. The company had previously announced plans to close 400 to 500 locations.
Rite Aid spokesperson Alicja Wojczyk stated in an email that many of the stores on the closure list have already closed or received notice of closure, while others will close in the coming weeks.
The affected stores in Los Angeles include Glassell Park, Mar Vista, and Mid-Wilshire. Other stores in Alhambra, Burbank, Covina, Downey, La Mirada, La Puente, and Bixby Knolls in Long Beach are also among the closures in Los Angeles County. Orange County will see the closure of six stores in Costa Mesa, Dana Point, Irvine, Laguna Niguel, Santa Ana, and Yorba Linda.
Inland Empire will lose its only Rite Aid store located on South Archibald Avenue in Ontario. Ventura County will say goodbye to its Oxnard store and one of the last two remaining locations in Ventura.
The closure of these stores brings the total number of Rite Aid stores in Los Angeles down to 15. In comparison, there are 66 CVS locations in the city, according to data company ScrapeHero.
Alhambra’s closure is particularly noteworthy as Rite Aid will have closed its remaining two locations there within the last two years. Alhambra Mayor Ross Maza expressed sadness at the loss but mentioned the presence of other pharmacies like CVS and Walgreens in the area.
Mayor Maza also highlighted the challenge of finding new tenants for vacant buildings, using the example of a previous Rite Aid location that closed in 2022 and remains vacant. He expressed hope for filling the spot left by this Rite Aid closure.
Additional cities affected by the closures include Burbank, Covina, Dana Point, Downey, La Mirada, La Puente, Laguna Niguel, Oxnard, and Yorba Linda.
The closures have raised concerns among experts about the impact on access to medicine, particularly in lower-income Black and Latino communities, which tend to be targeted by drugstore chains when closures occur. USC pharmacy professor Dima Qato expressed worry about the possibility of pharmacy deserts. Rite Aid emphasized that the decision to close stores is based on various factors and is taken seriously.
The company did not disclose the exact number of employees affected by the closures but stated that they would strive to transfer associates to other Rite Aid locations whenever possible.
Rite Aid currently employs approximately 45,000 workers nationwide and operates over 2,000 stores, including more than 400 in California. The company faces about $4 billion in funded debt and makes around $200 million in annual interest payments, leading to an unstable capital structure.
Rite Aid attributes the $750 million operating cost for the 2023 fiscal year to factors such as record inflation, rising labor costs, declining reimbursement rates, and reduced demand for COVID-19 vaccines and related products.
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