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Rite Aid Files for Bankruptcy
- deleted 3y ago[deleted]
- burkaman 3y agoAre they actually bankrupt or just trying to get out of paying for all those lawsuits?
- username332211 3y agoThey can hardly pay their current creditors, much less the lawsuits.
- jacurtis 3y agoThat was my question, I think this is just a good old fashion all-american "corporate do-over".
- cratermoon 3y agoTexas Two-Step: https://en.wikipedia.org/wiki/Texas_two-step_bankruptcy https://en.wikipedia.org/wiki/Texas_two-step_bankruptcy
- AmVess 3y agoThey have been closing stores for a while, and will close a lot more in C11. Corporate is very much trying to devise some way of keeping the doors open, but they are going to hit the same wall that a lot of other retail operations hit. The world simply no longer has a need for every street corner having the same types of stores selling the same types of things at the same prices.
- seanmcdirmid 3y agoEven without the lawsuits they would probably be over. The whole retail drug store industry is in dire straights these days.
- deleted 3y ago[deleted]
- sonofhans 3y agoFWIW it’s “dire straits” — https://en.wikipedia.org/wiki/Strait https://en.wikipedia.org/wiki/Strait — as in “a narrow and dangerous passage.”
- MenhirMike 3y agoSo, if they go bankrupt, is that... ( •_•)>⌐■-■ Money for nothing? (⌐■_■)
- adventured 3y agoThey have been in the process of a slow collapse for about ~20 years. "How did you go bankrupt? Two ways. Gradually, then suddenly." - E. Hemingway
- AmVess 3y agoThey are going kaput, and have been for a long time. I was in one last year, and the store had many empty and partially full shelves. The last time I had seen something similar was when K-Mart hit the skids. Aisles of nothing, and then an aisle or two of things stacked so as to appear there was more on the shelves than there actually were. It very much had a semi-abandoned, depressing feel to it. CVS and Walgreens are headed down that path, too.
- wayfinder 3y agoNo I doubt CVS is. Their profits have gone up almost every quarter for almost 6 years, unlike Walgreens and Rite-Aid. Plus none of their stores that I’ve been inside has looked dead, and they always have locations in the right places like in downtown areas. You almost wonder what Walgreens and Rite-Aid have been up to all this time. At the end of the day, if I’m in a major metro area and I’m not near a supermarket, I’m going to CVS.
- IG_Semmelweiss 3y agoIve seen a supermarket hitting the skids. One with heavy foot traffic (they failed to renegotiate the lease). It is one of the saddest, most depressing things i've ever seen. Just seeing staff, most of whom had been working in that market for years, was heartbreaking. You didn't even have to talk to them to see how the slow moving death sentencew was affecting them It gave me a taste of how living in a communist country must be like.
- 1-6 3y agoWhy is Rite Aid responsible opioid lawsuits though? They're just carrying out the lawful orders from the government, lawmakers, and big-pharma. Are drug stores now responsible for doing their own screening on products? I wonder what will happen to dispensaries once companies like Rite Aid are allowed to crumble.
- deleted 3y ago[deleted]
- stevehawk 3y agothe claim in the lawsuits has been that the pharmacies should have recognized "red flags" on prescriptions, such as pill count or refill frequency.
- 1-6 3y agoPerhaps we're dealing with a situation where the hindsight is clearer than activity in the moment. Not defending Rite Aid but when a drug prescribed by a doctor flows into the system, that's fulfillment of an order to me and I'm not going to go through every medical record to find out whether or not the drug prescribed is valid or not.
- aaomidi 3y agoYeah. Except you legally have to. Not every doctor can prescribe every medication.
- duskwuff 3y agoIt is literally the job of a pharmacist to use their own best judgement when deciding whether to fill prescriptions. That's why you need a Pharm.D to work in that position; if they were just counting pills, they wouldn't need that level of training.
- rented_mule 3y agoOne widely reported macro red flag... in Trumbull County, Ohio, over the course of four years, an average of 400 painkiller pills for each resident of the county were dispensed by the pharmacies operating in that county. 80 million pills in a county of 200,000 people. Lake County, Ohio had 61 million pills dispensed in that period with a little over 200,000 people living there. https://www.pbs.org/newshour/economy/judge-says-pharmacies-owe-2-ohio-counties-650-million-in-opioids-suit https://www.pbs.org/newshour/economy/judge-says-pharmacies-o...
- dheera 3y agoI figured they would, sooner or later. Almost all companies with the name "Rite" in their name wreak of the 1970's, ugly painted brick buildings, and make me not want to shop at them. They need to update their branding to the 21st century. Others: Bi-Rite Creamery Shop-Rite etc. Walgreen's needs to fix their font too. It looks like 1990's Microsoft fonts. I shop at CVS because I like their graphic design better.
- bombcar 3y agoAt least shop at subversion if you must refuse to shop at git ;)
- AlbertCory 3y agoDon't forget Smell-Rite, that discount cologne. Comes in convenient 32-oz bottles.
- deleted 3y ago[deleted]
- 1123581321 3y agoI did wonder how they never modernized their name and mark into something distinctive, like CVS pulled off with the initialism and the red heart. The syllable "rite" isn't intrinsically bad, but it is associated with torpor, which is offputting to potential customers.
- Rebelgecko 3y agoThey did a big rebrand a year or two ago
- 1123581321 3y agoDid you think it was effective? I didn’t. There’s still the issue with the name, the pestle wasn’t successfully abstracted into a more general health association, and the colors are less distinct.
- hbcondo714 3y agoThe article links to their bankruptcy court documents but here's what they filed with the SEC, noting that it has a Period date of Sunday, Oct. 15th and a release date of Monday morning: https://last10k.com/sec-filings/rad/0001104659-23-109236.htm https://last10k.com/sec-filings/rad/0001104659-23-109236.htm
- ryanwhitney 3y agoGuess that’s why they’re aggressively shuttering Bartell’s locations in Seattle. Another successful acquisition story. :)
- deleted 3y ago[deleted]
- abeyer 3y agoWell they've all but run them into the ground already, in the process of extracting any profit they may have been able to squeeze, so not sure it's any big loss anymore.
- darth_avocado 3y ago> Rite Aid files for bankruptcy amid opioid-related lawsuits and falling sales They just paid $30M. I’d hardly call it worthy of being mentioned. The big issue is their profitability. They over extended and now are pulling back like Wallgreens and the others. And using bankruptcy to restructure any liabilities from the opioid epidemic lawsuits.
- dylan604 3y agoNever let a good bogeyman go to waste when it's just right there for taking all the blame (at least a good portion of it). All of these people will need new jobs. Do you think "opioid lawsuits" or "business incompetence" will help these fine folks find their next positions?
- eru 3y agoLow US unemployment rate of 3.8% will help.
- 3seashells 3y agoOne can track previous employment now on linked in etc. I wouldn't hire someone who worked at Purdue and the likes. Then again, I heard the cartels are always hiring..
- nerdponx 3y agoIs CVS doing something different from the others? They seem to be everywhere.
- yuliyp 3y ago$30M for a company whose income and loss is generally in the tens or hundreds of millions per quarter is significant.
- Animats 3y agoAnd then they were only two - CVS and Walgreens.
- SoftTalker 3y agoWalmart? Target? Kroger? Independents?
- boulos 3y ago> Independents? Good one :).
- toomuchtodo 3y agoNorth Dakota requires pharmacies be owned by independent pharmacists. It works. Other states could follow, if they so choose. It is a choice. Prevents private equity roll ups, prevents consolidation, and is proven to be beneficial for all parties involved. https://ilsr.org/rule/pharmacy-ownership-laws/2832-2/ https://ilsr.org/rule/pharmacy-ownership-laws/2832-2/ (Walmart spent almost $10M attempting to challenge this law, and still lost to North Dakota voters: https://www.drugtopics.com/view/walmart-spent-93-million-challenge-nd-pharmacy-law https://www.drugtopics.com/view/walmart-spent-93-million-cha...)
- WillPostForFood 3y agoproven to be beneficial for all parties involved I'm intrigued, but where was it proven?
- toomuchtodo 3y agoQuoting from the citation I provided: > In North Dakota, prescription drug prices are more affordable than in two-thirds of all states. Pharmacies are more plentiful, with more per capita than in neighboring South Dakota, Minnesota, or nationally, and they’re more broadly distributed; North Dakota’s rural areas are 51 percent more likely to contain a pharmacy than similarly-populated areas of South Dakota. And in general, independent pharmacies provide higher quality care, studies and surveys of customer satisfaction find. > North Dakota reaps economic benefits, too, from this local ownership. Without the Pharmacy Ownership Law, a 2014 report from ILSR estimates, about 70 of North Dakota’s independent pharmacies would close. Chain pharmacies headquartered around the country and out-of-state mail order companies would fill the gap, and ILSR estimates that direct economic losses to the state’s economy would be at least $17 million, and as high as $29 million, without accounting for indirect impacts such as lost tax revenue. So, prescriptions are affordable and accessible to prescription consumers, these independently owned and operated pharmacies are sustainable, dollars are kept local and in the state, and large format retailers (Walmart, CVS, Walgreens, Rite Aid) are kept out of the market. Voted for by 60% of North Dakota voters in their last referendum. "Proven to be beneficial for all parties involved."
- rtkwe 3y agoAnecdotally the position of pharmacy chains is so weird. I feel like more than half the time if I see one of either Rite Aid, Walgreens, or CVS there's one of the other two directly across the street. Usually it's the pair of Walgreens and CVS. Someone with skills in GIS could probably answer this pretty quickly...
- flashback2199 3y agoIt's probably that math phenomenon that explains why gas stations cluster together. I guess this is the one. I heard about it on here long time ago. https://mindyourdecisions.com/blog/2008/03/25/game-theory-tuesdays-hotelling%e2%80%99s-game-or-why-gas-stations-have-competitors-nearby/ https://mindyourdecisions.com/blog/2008/03/25/game-theory-tu...
- pests 3y agoThere's an old joke about how McDonald's would spend millions of dollars on selecting the locations for their franchises. Traffic analysis, weather forecasts, foot traffic, local politics, chances of disaster, advanced models and simulations projecting population density and future profits. Wendy's just put their stores next to a McDonald's.
- dreamcompiler 3y agoBy the same token, Tesla spends a lot of time figuring out where to put superchargers. Electrify America just builds their superchargers across the street from Tesla's (or in the parking lot of the nearest Walmart).
- deathanatos 3y ago… I always figured that gas stations clustered together to minimize the distance long haul drivers would need to go to get to a gas station. I.e., they're clustered, but near highways. The same logic doesn't apply to pharmacies: I don't have a sudden need for drugs on the road. (I'm not sure how much I actually buy the mathematics in the article.)
- huytersd 3y agoMaybe they should try being only a prescription fulfilling pharmacy, OTCs and a place you can get your shots. You can fit those things in 10% of the floor space these places usually occupy.
- jrnichols 3y agoOne of the things that worries me about this because we have other local pharmacy choices, but that Rite-Aid bought up a California favorite called Thrifty's and still sells their amazing ice cream. If Rite-Aid goes away, no big loss, but losing the Thrifty's ice cream would be heartbreaking to many.
- kqr2 3y agohttps://www.thriftyicecream.com/ https://www.thriftyicecream.com/
- whyenot 3y agoAh yes, I remember biking with friends down to the San Antonio Shopping Center, stopping at the Menu Tree for donuts, and then Thrifty's for that super inexpensive, cylinder-shaped ice cream. I must have been about 12 years old at the time.
- tiptup300 3y agoI found this so funny. There's a rite aid we would go to occasionally, since the area is so skewed rural and geriatric, so they constantly have a great clearance area since nobody goes there for most of the stuff they sell. Noticed a freezer absolutely brimming full of this ice cream brand I never heard of. I can't imagine how much they have to throw out month after month. I bought a case of it. It was fine. On par with....eddys.
- grogenaut 3y agoThey bought up a really nice local seattle pharmacy bartels, I'll be sad if they end up tanking it.