Photos and reporting by Stacie Joy
As part of another Chapter 11 bankruptcy proceeding, Rite Aid is reportedly closing (or selling) all 184 outposts in New York State, including 81 First Ave. at Fifth Street.
A spokesperson told ABC 7 in Buffalo that "the company is still in the process of selling its stores and assets and all locations will not necessarily close next month. The company says the sale process is fluid, and some stores could be acquired by another company that would allow them to remain open."
Employees at the East Village location learned the news on Monday.
"Your prescriptions will be transferred to a chain pharmacy nearby, probably either CVS or Duane Reade, whichever company buys the prescriptions from us," a store employee told us.
Also, currently: "We may not be able to get stock, so you should think about transferring your prescriptions soon."
As for closing signage, there weren't any as of early yesterday afternoon.
"We just found out, so we haven't made any signs yet, but they should start going up," the employee said. "Rite Aid is closing all up the seaboard, not just here."
Philadelphia-based Rite Aid had been closing stores and struggling with losses for years before its first bankruptcy filing in 2023. The company says its "only viable path forward" is a return to Chapter 11 bankruptcy proceedings.The company said in letter to vendors that it has been hit with several financial challenges that have grown more intense. Rite Aid and its competitors have been dealing with tighter profits on their prescriptions, increased theft, court settlements over opioid prescriptions and customers who are drifting to online shopping and discount retailers.
No word on an official closing date.
Back to the AP:
Stores will remain open for now, but the company isn't buying new inventory so bare shelves are likely become more common."I think what we'll progressively see is the stores will become more and more spartan," said retail analyst Neil Saunders.
The shelves at the First Avenue Rite Aid have been mostly barren for over a year, though this store made it through the previous company turmoil.
The one-story First Avenue location sits on a prime East Village corner, and developers would likely pay top dollar for another sliver of luxury housing. However, we're not sure what air rights remain after the construction of the 8-story cantilever condominium next door.
H/T EVG reader Elissa
