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Home » Downtown Rite Aid set to close Dec. 6

Downtown Rite Aid set to close Dec. 6

Chain seeks Chapter 11 bankruptcy protection

Rite-Aid3_web.jpg

Rows of empty shelves at the downtown Spokane Rite Aid store before it closed in December 2023 following the drugstore chain's first bankruptcy filing.

| Karina Elias
November 22, 2023
Karina Elias

The downtown Rite Aid store located at 112 N. Howard, neighboring the Parkade Plaza parking garage, will close permanently on Dec. 6, says the store’s supervisor, Katy Nielsen.

Nielsen adds that, until then, the store will be closed on weekends and will have reduced hours leading up to the final closure.

Including the downtown store, Rite Aid Corp. has nine pharmacies across Spokane, two in Spokane Valley, one in Coeur d’Alene and one in Hayden, the company’s store locator maps show.

Nielsen says she was informed only stores in downtown cores would be shut down, and she’s unaware of any other store closures in the Spokane area.

She declines to disclose further details.

The company didn’t respond to requests for information.

The Philadelphia-based pharmacy chain filed for Chapter 11 bankruptcy protection on Oct. 15 in New Jersey’s U.S. Bankruptcy Court to “reduce its debt and enhance financial flexibility,” the company shared in a statement to its shareholders.

The company has secured $3.45 billion in financing from its lenders to continue operating during the bankruptcy proceedings, according to the statement.

To lead the restructuring of the company, Rite Aid has appointed a new CEO, Jeffery Stein, founder of Stein Advisors LLC, it announced in a press release the day after filing for bankruptcy. Stein Advisors is a financial advisory company that focuses on helping troubled companies with their financial restructuring.

As of June, Rite Aid had $3.3 billion in debt, according to the company’s filings. The amount doesn’t include alleged liability in lawsuits against the drugstore chain stemming from the nationwide opioid crisis. In March, the U.S. Department of Justice filed a complaint in federal court against Rite Aid and its subsidiaries, accusing the company of filling opioid prescriptions in excessive quantities.

According to court filings, Rite Aid is shuttering 154 stores across the country to help the company save money on rent and improve its financial footing.

The company has over 51,000 employees and about 2,500 stores in 19 states, according to its website.

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