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Rite Aid files for Chapter 11 bankruptcy

See if and how your local Rite Aid may be affected.

PENNSYLVANIA, USA —     Rite Aid has already closed several stores here in our area. We'll see if the pace picks up now that the chain is in Chapter 11 bankruptcy...

   In a move that's been expected for weeks, Rite Aid declared Chapter 11 in a New Jersey court late yesterday.

     The company is billions in debt.  This year's losses will be at least 650 million dollars, according to a Rite Aid spokesman. The chain faces lawsuits after allegedly illegally prescribing opioids.   You can grab a share of Rite Aid stock for only 65 cents.

  Chapter 11 is a re-organization, and not a going out of business sale.

      Here is what happens next.  The company has new leadership and three and a half billion dollars in new financing. Underperforming stores will close.  Rite Aid did not give a number, location, or timeline.  The Wall Street Journal puts the number of stores closing at around five hundred.

   Rite Aid started in downtown Scranton in 1962.  There is still a store on North Washington Avenue.

  Right now, Rite Aid has 2,100 stores in 17 states.  We will see how that changes now that Rite Aid is bankrupt.

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