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Two Rite Aid stores in Redwood City are slated to close as the company files for bankruptcy.
Rite Aid Corporation, a full-service pharmacy, announced last month that it is filing for Chapter 11 of the U.S. Bankruptcy Code, which allows a company to restructure its debts and operations under court supervision. According to a press release from the company, the process will enable Rite Aid to sell most or all of its assets while continuing to operate in the short term.
Based in Philadelphia, the company operated two locations in Redwood City: 2150 Roosevelt Ave. and 340 Woodside Plaza.
During the bankruptcy process, Rite Aid customers can continue to access pharmacy services and products in stores and online, including prescriptions and immunizations. The company said it is working to facilitate the transfer of customer prescriptions to other pharmacies. Employees involved in this process will continue to receive pay and benefits, according to the release.
Rite Aid also said it has secured nearly $2 billion in financing from existing lenders to support operations during bankruptcy. The company intends to sell assets through a court-supervised process known as Section 363, which allows a bankrupt company to sell assets to repay creditors, the release added.
