
The Rite Aid pharmacy at 773 Hamilton Street is among 12 of the chain’s New Jersey locations that will be closed by the ailing retailer, according to court documents.
Philadelphia-based Rite Aid Corp. on October 15 filed for Chapter 11 bankruptcy protection, citing income losses and pending lawsuits alleging its stores filled illegal opioid prescriptions.
As part of its restructuring, Rite Aid said in bankruptcy filings that it will sell more than 150 of its 2,100 stores in 17 states.
There was no word on when the Hamilton Street store, or any of the targeted stores, will close. Rite Aid has said that it will find jobs for employees in the affected locations at other sites.
The company filed for bankruptcy in U.S Bankruptcy Court in New Jersey. The company will also sell Elixir, its pharmacy benefit manager.
Rite Aid, which posted $24 billion in revenue in 2023, employs more than 45,000 people and fills nearly 200 million prescriptions a year, according to its filings.
“Despite its proud heritage, a confluence of operational and financial factors have stressed Rite Aid’s financial condition and necessitate a comprehensive reorganization,” the company said in its filing.
Among those factors cited by the company in its filing are $4 billion in debt, inflation, increased labor costs, declining reimbursement rates from third-party payers and poor-performing stores.
The company also faces more than 1,600 opioid-related lawsuits, it said in its filing.
“The Company’s extensive litigation portfolio is expensive to manage, has drained liquidity, required substantial time and attention from key executives, and complicated the ability to explore out-of-court alternatives, particularly when combined with other operational headwinds,” the company said.
“It became evident that a restructuring through chapter 11 would best position Rite Aid for long-term success,” the company said in its filing. “An orderly process with support from key creditors should help the Company maintain trade credit and obtain post-petition financing to preserve thousands of jobs, continue operations in chapter 11, and take the necessary steps to right-size the business for a successful emergence.”
“And Rite-Aid will work to develop consensus among all constituencies on an expedited basis,” the company said.
Despite the imminent closing, Franklin is still served by a number of pharmacies, including Somerset Park Pharmacy on Easton Avenue, Township Pharmacy and Walgreen’s on Hamilton Street, and CVS on Elizabeth Avenue.
There are also pharmacies located in township supermarkets.