Rite Aid is closing or selling all of its stores. What to expect in SLO County
Pharmacy chain Rite Aid has once again declared bankruptcy, and now plans to sell of or close all of its stores across the United States.
That could have a big impact in San Luis Obispo County, where the chain has 10 locations.
The company entered voluntary Chapter 11 proceedings in U.S. Bankruptcy Court of the District of New Jersey on May 5, Rite Aid said in a news release.
“For more than 60 years, Rite Aid has been a proud provider of pharmacy services and products to our loyal customers,” CEO Matt Schroede said in the release. “While we have continued to face financial challenges, intensified by the rapidly evolving retail and healthcare landscapes in which we operate, we are encouraged by meaningful interest from a number of potential national and regional strategic acquirors.
“As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible.”
Rite Aid says most stores will stay open through bankruptcy
So what should customers expect as the company sells of and closes the majority of its assets?
In a letter to customers shared alongside the bankruptcy announcement, Rite Aid said the majority of its stores are expected to “remain open and operating for the next few months.”
Customers will continue to be able to access pharmacy services and products in stores and online throughout the process, the company said. This includes prescriptions and immunizations.
The company is also working to “facilitate a smooth transfer of customer prescriptions to other pharmacies,” the release said.
To help fund operations through the bankruptcy, Rite Aid has secured about $1.94 billion in new financing from lenders, according to the release.
“This financing, along with cash from operations, is expected to provide sufficient funding during the sale and court-supervised process,” the release said.
In the meantime, however, customers will likely once again notice empty shelves at their local stores.
As happened when the company last declared bankruptcy in 2024, the chain will not be buying new inventory as it goes through the proceedings — meaning the shelves will begin to get even more bare at more stores in the coming months.
What will happen to SLO County Rite Aid stores?
In San Luis Obispo County, the chain has 10 locations spanning Arroyo Grande to Paso Robles.
Those are:
- 1690 E Grand Ave., Arroyo Grande
- 1207 E Grand Ave., Arroyo Grande
- 7025 El Camino Real, Atascadero
740 Quintana Road, Morro Bay
1110 Los Osos Valley Road, Los Osos
- 1151 Creston Road, Paso Robles
- 2424 Spring St., Paso Robles
- 531 5 Cities Drive, Pismo Beach
- 1251 Johnson Ave., San Luis Obispo
- 956 Foothill Blvd., San Luis Obispo
According to court documents filed as part of the company’s bankruptcy proceedings, Rite Aid plans to immediately close 115 stores across the United States.
No San Luis Obispo County store appeared among those slated for the first round of closures, meaning the company will likely first attempt to sell off those locations.
If that is unsuccessful, they could face permanent closure.
%20Cropped.jpg)