Rite Aid files for bankruptcy – again
Also, news on a Bob Dunning event, Mabel’s Market, Day in Downtown, Aggie Square, a family entertainment center, Mexican restaurant and American Indian museum
All remaining Rite Aid stores will likely close.
In the company’s second bankruptcy filing in less than two years, it announced plans Monday to sell all its assets, citing financial challenges and competition from other pharmacy chains.
Matt Schroeder, chief executive officer of Rite Aid, said, “As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible.”
The company initially filed for bankruptcy protection in October 2023. Before that, it ran more than 2,300 stores in 17 states.
For years, employees have dealt with frustrated shoppers who routinely complain about empty store shelves. Many of those customers did not return.
Rite Aid has 17 remaining locations in the Sacramento area, including three in Yolo County. Those are in Davis at 655 Russell Blvd., in Woodland at 295 Main St., and in West Sacramento at 1260 E. Capitol Ave. The company owns one of those 17 properties: at 6639 Watt Ave. in North Highlands. The other 16 stores’ leases will be sold, the Sacramento Business Journal reports.
Davis had a second Rite Aid at 2135 Cowell Blvd. that closed in December 2023.
As part of this second bankruptcy filing, the company has $1.94 billion in new financing to provide funding through the sale and court-supervised process, a news release said. It plans to “divest or monetize any assets that are not sold,” it said, while supporting payment of employee wages and benefits.
The Associated Press said the company will work to ensure that customer prescriptions are transferred to other pharmacies as it goes through the sale process.
→ Dunning Stories on Stage: Join me Sunday at Sudwerk Brewing Co. for Stories on Stage, featuring Bob Dunning and his work.
Actor Larry Lew will read some of Bob’s favorite columns from The Davis Enterprise and Substack. After that, UC Davis English professor Andy Jones will interview Dunning on stage.
The free event is from 4 to 6 p.m. at Sudwerk, 2001 Second St., Davis.
Announcing the event in his column on Monday, Bob said, “According to the Stories on Stage promo, ‘We’re proud to say that since our event began, we’ve had shows that were hilarious, others that were poignant (and many that were both), and that each and every one has been captivating.’ I’ll try not to break that streak.”
He also noted, “This weekend happens to coincide exactly with the first anniversary of my death at the local newspaper and resurrection as The Wary One on Substack.”
As most of you know, I pulled my Comings & Goings column from the paper a few days later, in protest of Dunning’s layoff. I joined him on Substack on May 17. A year later, there’s plenty reasons to celebrate. We’re both doing better financially, and have greater freedoms than before. I’m working on a column that will mark this anniversary.