PHILADELPHIA (KYW Newsradio) — If Rite Aid is your go-to pharmacy, you may want to start searching for a new one.
The Philadelphia company filed for bankruptcy this week. They plan to close eleven stores in Philadelphia — two of which are in North Philly — seven in South Jersey, and eight in the Philadelphia suburbs.
The company, in its 60th year of business, expects a net loss of nearly $680 million in the current fiscal year, which will end next spring.
On Sunday, Rite Aid said they reached an agreement with some key creditors on a financial restructuring plan to cut its debt and that it obtained $3.45 billion in fresh financing from some of its lenders. That money is expected to help support them through the Chapter 11 process, which involves reorganizing a corporation or partnership.
The company’s filing in New Jersey’s U.S. Bankruptcy Court listed $8.6 billion in total debts and $7.6 billion in assets.
They say they are not yet sure which stores will close, but plan to transfer workers to other Rite Aid locations where possible.
Public health experts have expressed concern that the closures could be centered on low-income areas, creating "pharmacy deserts" — neighborhoods without easy access to a drugstore.
The company said in a fact sheet laying out its plan that it “will make every effort to ensure our customers have access to health services, whether at another Rite Aid or another nearby pharmacy.”
AP News contributed to this report.