More than 50 Rite Aid closures will take place in California, New York and Pennsylvania.
Two days after filing for Chapter 11 bankruptcy protection, Rite Aid has announced plans to market 78 Rite Aid and Bartell Drugs pharmacy leases and 21 fee-owned properties.
Fifty-one of the locations going on the block are in California, New York, and Pennsylvania (each with 17). Seven Rite Aids and three Bartell Drugs are situated in Washington State.
Pending approval by the U.S. Bankruptcy Court for the District of New Jersey, the leases and properties will be disposed of in private sales conducted by A&G Real Estate Partners. After this initial process begins, Rite Aid will further assess its portfolio and likely close more stores, according to A&G.
"Rite Aid, which operates more than 2,100 retail pharmacy locations across 17 states, is working collaboratively with its financial stakeholders to reduce its debt and position its business for success," said Andy Graiser, co-president of A&G. "Portfolio optimization is a powerful and essential part of that go-forward strategy."
Including options, all leases put on the market by the nation’s third largest drugstore chain have more than 10 years of term remaining. The initial spate of leases up for grabs are in the following states:
New York (14)
Washington (6 Rite Aid, 3 Bartell Drugs)
New Jersey (6)
The 21-fee-owned Rite Aid locations (both stores and land) are in these states:
New York (3)
New Jersey (2)
New Hampshire (2)
A&G anticipates quick disposition of the leases and properties, depending mostly upon how quickly its negotiations progress with Rite Aid’s landlords.
Ranging in size from 6,400 sq. ft. to 37,154 sq. ft., the stores are in downtowns, strip centers, and power centers. Others are freestanding locations with drive-thru windows.
"These properties are in high demand among users such as dollar stores, gyms, grocers, specialty discount stores and quick-serve restaurants," said A&G senior managing director Mike Matlat. "We anticipate robust interest from a wide array of retail operators.”