All Rite Aid Stores In NY To Close, Or Be Sold, Including 16 In HV

HUDSON VALLEY, NY — A popular pharmacy chain will be closing or selling all of its 178 New York locations: Rite Aid announced Tuesday that the business will commence Chapter 11 bankruptcy proceedings for the second time.

During the months to come, Rite Aid will shutter or sell its New York locations, including 16 in the Hudson Valley, throughout Westchester, Putnam, Rockland, Orange, Dutchess, and Ulster counties.

Rite Aid, sources said, is in active discussions with multiple potential buyers; however, any stores or assets sold will no longer be owned or operated by Rite Aid. Over the next few months, all Hudson Valley stores will close or be sold, with no new merchandise ordered.

Rite Aid, a release said, announced Tuesday that it is "pursuing a strategic and value-maximizing sale process for substantially all of its assets. To facilitate this process, the company and its subsidiaries commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of New Jersey."

During that process, Rite Aid customers can continue to access pharmacy services and products in stores and online, including prescriptions and immunizations. In connection with the sale process and court-supervised proceedings, "the company is working to facilitate a smooth transfer of customer prescriptions to other pharmacies. Rite Aid employees assisting with this process will continue to receive pay and benefits," the release said.

Matt Schroeder, chief executive officer of Rite Aid, reflected: "For more than 60 years, Rite Aid has been a proud provider of pharmacy services and products to our loyal customers. 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 acquirers. As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible."

Schroeder added: "I will be forever grateful to our thousands of associates for their commitment to Rite Aid and its mission, and I thank our entire team — from store associates to corporate employees — for their dedication to our customers and our company. With their support, we have played a critical role in supporting the healthcare needs of countless Americans across the communities that we are honored to serve."

To support Rite Aid during its sale process, which it intends to conduct under section 363 of the U.S. Bankruptcy Code, the company has secured commitments from certain of its existing lenders to access $1.94 billion in new financing, the release said. That financing, along with cash from operations, is expected to provide sufficient funding during the sale and court-supervised process.

The company intends to divest or monetize any assets that are not sold through the court-supervised process, the release said. Rite Aid has filed a number of customary motions with the court seeking authorization to support operations, including continued payment of employee wages and benefits, the company said.

Rite Aid stores to close or be sold in the Hudson Valley include locations in:

• Ardsley
• Beacon
• Brewster
• Carmel (2 stores)
• Hopewell Junction
• Hyde Park
• Kingston
• Mahopac
• Middletown
• Montgomery
• Newburgh
• Poughkeepsie (2 stores)
• Valley Cottage
• Wappingers Falls

Last year, following numerous nationwide closures, Rite Aid closed 3 additional Hudson Valley locations, including stores in Hartsdale, Mount Vernon, and Poughkeepsie, bankruptcy court documents indicated.

For a full list of New York Rite Aid locations, click here.