Wednesday, June 19, 2024

Right Aid Strugling in Chapter 11 Will Close Another 27 Stores As FTC Action Blocking 2015 Merger of Walgreens and Right Aid Has Been a Disaster

 

Rite Aid struggling in B/K has just announced the closing of another 27 stores
Shopping at Rite Aid in Costa Mesa one has to believe there soon will be more
The shelves remind one of shopping in the Soviet Union before its collapse
Shelves for many items are completely bare or between some goods large empty gaps
In 2015 Walgreens entered a merger deal to acquire Rite Aid for 17.2 billion bucks
But after 2 years of FTC examination, the FTC blocked the deal and the merger was chucked
Despite pleas of Rite Aid that without a merger it would not survive
It was forced to file for Chapter 11 in October of 2023 to try to stay alive
From over 2200 stores operated on the date of filing for B/K
It has closed stores right and left to shed debt and only some 1700 are left today
Good chance the closing of stores we have not seen the end in sight
And the hundreds of Rite Aid employees are suffering in the jobless fight
Good chance had the merger been approved many Rite Aid stores would have shut their doors
But the laid off employees would have had a better chance to remained employed in Walgreen stores
A good chance Right Aid will disappear with locations picked up by competing chains
Same result if merger approved except Rite Aid shareholders would be able to $17.2 billion claim

© 6/19/2024 Michael P. Ridley aka The Alaskanpoet

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