News Briefs

Rite Aid's troubles continue to mount.

The struggling drug store chain disclosed that it is no longer in compliance with New York Stock Exchange (NYSE) continued listing standards, which require a $1.00 average closing share price over a 30 trading-day period. (As of Thursday late afternoon, Rite Aid’s stock was trading at about $0.54 on the NYSE.)

Under NYSE rules, Rite Aid will be provided with “cure periods” and the company’s common stock will continue to be listed and traded on the NYSE during these periods, subject to its compliance with other continued listing requirements.

 

Rite Aid may file bankruptcy, close stores

This NYSE non-compliance notice comes on the heels of media reports that Rite Aid is preparing a Chapter 11 bankruptcy plan which involves store liquidations, according to a report by The Wall Street Journal. Under the plan, Rite Aid would close 400 to 500 of its more than 2,100 stores and either sell or let creditors take over its remaining operations, the report said.

In August, the Journal reported that Rite Aid was preparing to file for bankruptcy protection  in a move to deal with its more than $3.3 billion in long-term debt and lawsuits related to opioid prescriptions. The expected Chapter 11 filing would cover Rite Aid’s debt load and pending legal allegations that it oversupplied prescription painkillers.

The current noncompliance with NYSE listing standards does not affect Rite Aid’s ongoing business operations or U.S. Securities and Exchange Commission reporting requirements, nor does it trigger any violation of its material debt or other obligations. However, Rite Aid says it can provide no assurances that it will be able to regain compliance with the NYSE’s continued listing standards or maintain the listing of its shares on the NYSE.

 

Delivery platform DoorDash is teaming up with the world’s leading Halloween retailer to provide on-demand access to thousands of items.

The partnership between DoorDash and Spirit Halloween is a first for the two companies. Over 1,500 locations are now available on the DoorDash marketplace nationwide, giving customers access to shop the largest assortment of Halloween costumes, decor and accessories. To promote the new partnership, DoorDash is treating customers to 30% off eligible retail orders of $30 or more, up to $20 off, with code TRICK30, now through Oct. 31.

Recent data from National Retail Federation (NRF) shows that Halloween spending is expected to be about $12.2 billion, breaking last year’s record. A record number of people (73%) are expected to participate in Halloween-related activities this year, up from 69% in 2022.

With the partnership news, Spirit Halloween joins over 100,000 non-restaurant stores already on the DoorDash Marketplace and Drive platforms across North America. More than 98% of DoorDash’s monthly consumers in the U.S. now have access to a non-restaurant store on DoorDash.

Dollar General has marked a major milestone in its expansion.

The discounter celebrated the grand opening of its first store in Montana, in Columbia Falls. With the addition the new location, Dollar General now has stores in all 48 continental U.S. states.

In addition, construction is currently underway on Dollar General stores in Lincoln and Sanders Counties, Mont., with both expected to open in fall 2023. The retailer said plans to evaluate additional areas in the Treasure State for future locations.

“Today marks an exciting milestone in our history as we extend our ability to provide customers with convenient and affordable access to household essentials throughout all 48 continental states,” said Steve Deckard, Dollar General’s executive VP of growth and emerging markets. “As America’s general store, we believe each new Dollar General represents positive economic impact, local job opportunities, community donations and literacy grant opportunities through the Dollar General Literacy Foundation.”

As of August 4, 2023, the company operated 19,488 Dollar General, DG Market, DGX and PopShelf stores across the United States and Mi Súper Dollar General stores in Mexico. 

 

Walgreens Boots Alliance may be considering a health care veteran as its next chief executive. 

According to a report by Bloomberg, which cited people familiar with the matter, the company is considering Tim Wentworth as CEO.  The report said Walgreens may still consider other candidates for the role.

Wentworth, who is listed as retired on his LinkedIn page, served as CEO of Cigna’s health services division, Evernorth, from Sept. 2020 to Dec. 21. Prior to that, he was president, health services, at Cigna from Dec. 2019 to Dec. 2021. 

Before Cigna, Wentworth was president and CEO of Express Scripts, from 2016 to 2021. (Cigna acquired the pharmacy benefits manager for $67 billion in 2018.)

On Sept. 1, Walgreens said that Rosalind Brewer had stepped down as CEO of Walgreens. Her departure, effective as of Aug. 31, came after less than three years on the job.  In making the announcement, the company noted that it would search for a new CEO with "deep healthcare experience."

 

Last month’s opening of a Target store in the former Sears space at Kings Plaza in Brooklyn has the mall’s owner overjoyed with the switch.

Macerich, which earlier placed Primark, Zara, and Burlington in the vacated space, tracked the early sales of the three-level Target and has projected that the replacement tenants will do eight times the annual sales that Sears did before it left.

“The tremendous success of the new Target, combined with strong performances for Primark, Zara and Burlington, demonstrates the power and promise of Kings Plaza, Brooklyn’s only fully enclosed retail center,” said Eric Bunyan, senior VP of leasing for Macerich’s east region.

Other recent arrivals at the 1.1 million-sq.-ft. mall on Flatbush Avenue in the Mill Basin section of Brooklyn include Shake Shack and Ashley Furniture. Macerch continues to seek out tenants for a 50,000-sq.-ft space on the corner of Flatbush Avenue and Avenue U with high visibility.

While redeveloping the Sears space, Macerich did a complete transformation of the front of the mall, added new lighting to its 10-level parking deck, and installed new furnishings and flooring on the mall’s second level.

Angela Aman, who has served as CFO and treasurer of Brixmor Property Group since 2016, has been promoted to the additional position of president by this owner-operator of 365 open-air retail centers.

In addition to her ongoing responsibilities, she will now oversee the company’s reinvestment function. Aman is a 20-year retail real estate veteran who previously served as CFO of Retail Properties of American Inc. and Starwood Retail Partners.

Brixmor also promoted its longtime leasing chief and chief revenue officer Brian Finnegan to senior executive VP and chief operating officer. He will now oversee the company's construction and property management functions as well as tenant relationships.

“Angela and Brian are extremely talented, proven leaders and team players who have been critical to our success. I am excited they have agreed to take on these additional leadership responsibilities,” said Brixmor CEO James Taylor in a press release announcing the promotions.