Rite Aid, a national drugstore chain, is once again struggling financially and has filed for bankruptcy protection. As part of its recovery plan, the company is selling real estate and retail leases for over 20 locations across Maryland. This is the second time Rite Aid has filed for Chapter 11 bankruptcy in less than two years. The company is trying to lower its debt and reduce the number of stores it operates in order to stay in business.
Stores Are Still Open While the Company Restructures During Bankruptcy
Even though the company is going through bankruptcy, Rite Aid announced that its stores will continue to stay open during this process. Chapter 11 bankruptcy allows businesses to keep running while they work on paying back what they owe and reorganizing their operations. This means that for now, customers can still shop at their local Rite Aid stores, even while some are listed for sale.
24 Maryland Locations, Including a Major Warehouse, Are Being Sold
In Maryland, Rite Aid has listed 24 different properties as part of the sale. This includes a massive 850,000-square-foot distribution center located in Harford County. The company is also looking to sell retail stores in several cities and towns, including Baltimore, Ellicott City, Randallstown, Owings Mills, Severna Park, and Westminster. New owners may buy these locations, or Rite Aid may shut them down, depending on how the sale turns out.
Court Must Approve Bankruptcy Request for the Sale Before It’s Final
Rite Aid is offering these properties for sale, but a bankruptcy court still needs to approve the transaction. A&G Real Estate Partners, a New York-based real estate firm, shared the list of locations and is managing the sale. The bankruptcy process requires all deals to go through proper legal channels before anyone can finalize them.
Over 1,000 Rite Aid Stores Nationwide Are Available
This is not just happening in Maryland. Across the United States, Rite Aid is selling 1,194 store leases and 50 properties that the company owns outright. A&G Real Estate Partners is in charge of marketing these properties to potential buyers. Rite Aid hopes that by selling many of its locations, it can focus on fewer stores and eventually return to stable financial health. The company has faced years of financial issues, including legal troubles and falling sales, which have led to this second bankruptcy filing.