Massive Layoffs Ahead: Giant Pharmacy Chain Closing All 179 New York Locations

Tens of thousands of hardworking Americans will soon be out of a job.

That's because Rite Aid, one of America's biggest drugstore chains filed for bankruptcy for a second time since 2023. The chain confirmed it will close or sell all of its remaining stores.

Rumors of the chain going out of business sparked last week, which drummed up concerns that the fourth-largest drugstore chain is going out of business.

Read More: End of an Era? Rite Aid Could Shutter All 179 of Its NY Locations 

The company confirmed yesterday that it will begin Chapter 11 bankruptcy proceedings. It also said it will keep its stores open until the process is complete.

Layoffs have already started, reports Bloomberg. However, bigger waves are anticipated to start on June 4.

Rite Aid has locations in Camillus, New Hartford, Rome, Utica, Washington Mills, and Whitesboro. The chain will reportedly help customers transfer their prescriptions to other competing pharmacies. 

Why Rite Aid Is Selling All Its Assets

CEO Matt Schroeder didn't mince words when explaining why the drugstore chain is going under. He said yesterday the bad economy, tariffs and other factors contributed to the situation.

Rite Aid has been struggling since the pandemic, so the news of its demise is not entirely surprising.

The drugstore chain filed for Chapter 11 bankruptcy in October 2023 and shuttered roughly 60 of its New York locations as part of restructuring efforts.

The company emerged from bankruptcy in September and the cost-cutting measure reportedly saved it about $2 billion.

Shroeder said in a prepared statement:

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

Reports say Rite Aid's liabilities are estimated to be over $1 billion.

Could Rite Aid Be Saved?

It depends on what the chain's future buyer or buyers plans to do with the name.

Schroeder said that ownership discussions have already started, and the company will try to minimize disruptions to both its employees and customers during this transition.

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"As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible," he said.

Still, once Rite Aid sells its assets, its future is entirely in the hands of its buyers.

However, expectations are that every Rite Aid will be shut down by the end of the year.