Rite Aid appears set to shutter its last Lake County location after its Painesville store was listed for closure in a recent court document filed with the U.S. Bankruptcy Court for the District of New Jersey and posted by the company’s claims agent.
The store at 180 N. State St. was one of 30 Ohio and Michigan locations listed in the June 28 notice of additional closing stores as part of Rite Aid’s bankruptcy process.
The store did not have any signage posted with information about a closure as of mid-afternoon on July 1, though there were handwritten signs indicating that the last opportunity for patients to pick up prescriptions would be 1 p.m. July 9.
The signage did not indicate what would happen to the pharmacy’s prescriptions after July 9.
Rite Aid’s national media office did not immediately respond to a request for comment.
The announcement comes less than a month after CVS closed its neighboring 265 E. Erie St. store. CVS referred customers to its store at 1890 N. Ridge Road in Painesville Township.
Painesville City released a statement about the closures on July 1.
“These decisions are made by their corporate offices and, based on our own assessment, has nothing to do with store traffic numbers,” the statement said. “As the rise of online services continue to grow, more closures in the surrounding areas should be expected.”
“Painesville City administration is working to contact the appropriate decision makers at each corporation to inquire about plans to sell the property and possible re-uses of the retail space,” it added. “The city will work with the property owners to provide any assistance in redeveloping these buildings.”
The administration referenced the potential closure of two pharmacies in May when proposing a one-year moratorium on new small-box discount stores, which City Council approved in June.
“What we wanted to do was take a look at what were the best and highest uses for those buildings, and hopefully stop any of the discount stores from moving in to have those buildings rented, but look at what the other options are and where we do want some of the discount stores within the city of Painesville,” City Manager Doug Lewis said at the time.
According to Painesville’s statement, Lake County Administrator Jason Boyd told the city that the county would not purchase the pharmacy properties or use them for an upcoming county jail or parking spaces.
City Public Information Officer Kathleen Sullivan added that the county’s new jail and safety center will be across Erie Street from the current jail and will not reach the block with the former CVS store.
The city also stated that it is not aware of any closure plans for the Walgreens at 132 Richmond St., though it added that “as locations across the country continue to close, customers should pay attention to signage in store.”
“Again, this is a national trend that is not unique to Painesville,” the statement said. “As buyer habits change, so does the use of retail properties.”
Painesville City’s remaining pharmacies include Walgreens and the pharmacy at the Signature Health building at 54 S. State St., Sullivan added.
Rite Aid filed for bankruptcy in October. Reuters reported on June 28 that the bankruptcy process will decrease the company’s store count from more than 2,000 to around 1,300.
Reuters added that the company’s restructuring plan was approved by a U.S. bankruptcy judge on June 28. It will reduce Rite Aid’s debt by $2 billion, and lenders will take leadership of the company.
The Associated Press reported in October that Rite Aid had endured annual losses for years before filing for bankruptcy. It added that the company’s bankruptcy filing stated that it had $8.6 billion in debts and $7.6 billion in assets.
According to a list compiled by Fox 8 News on July 1, Rite Aid has announced plans to close almost 90 Ohio stores since filing for bankruptcy. Other shuttered locations in the area include stores in Chardon, Euclid, Middlefield, Willowick and Willoughby.
None of those locations was listed on Rite Aid’s online store finder by July 2.
Rite Aid is not the only major pharmacy retailer to indicate plans to close stores.
CVS announced in 2021 that it would close approximately 900 of its almost 10,000 U.S. stores between 2022 to 2024. CNBC reported at the time that CVS planned to work on its online and healthcare offerings.
Walgreens Boots Alliance CEO Tim Wentworth said in a recent investors’ call that the Walgreens’ entire adjusted operating income comes from only 75 percent of its 8,600 U.S. stores, CBS News reported on June 27. The chain will consider closing some of the remaining 25 percent of stores over the next three years.
“The current pharmacy model is not sustainable,” CBS News reported Wentworth as saying.
The AP report listed recent challenges for pharmacies as including opioid lawsuits, drug shortages, difficulty staffing pharmacists and technicians, lower prescription reimbursements, declining demand for COVID-19 vaccines and tests and online competition.