Big Pharmacy crash: Walgreens' closure stores and Rite Aid declares bankruptcy
The two retailers struggle financially, which encourages them to take measures.
Your local pharmacy is still there when you are under the weather or you need to recover your prescription recharge. If you are a regular, you could even be on a first name with the pharmacist, trusting their recommendations for cold drugs and allergies when you need it. But if you are counting on some channels, you may soon be looking for a new place to shop: pharmacies of large names are now faced with a calculation, with Walgreens and Rite Aid closing stores declaring bankruptcy. Read the rest to learn more about the problems that afflict the two pharmacy chains.
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Walgreens did not meet financial expectations.
Walgreens reported signs of problem last week, announcing plans Cut $ 1 billion In costs in 2024, Axios reported.
The company did not meet Wall Street's expectations for the exercise which ended on August 31, losing $ 6.9 billion, which is partly due to $ 6.8 billion in opioids Complaints and disputes , according to Reuters.
Walgreens was dealing with various factors with an impact on businesses, including a drop in the sale of COVVI-19 products, a low prescription drug demand, staff debraying and a drop in sales of consumer health products Reason for continuous inflation, reported Reuters.
"Our performance this year has not reflected [Walgreens Boots Alliance] of solid assets, the heritage of the brand or our commitment to our customers and our patients", CEO Ginger Graham Said in a press release, by Reuters.
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The pharmacy giant closes stores and brings workers to the office.
In a continuous effort to reduce costs, Walgreens closes non -profitable stores and health care clinics. AE0FCC31AE342FD3A1346EBB1F342FCB
Although the company has specified that 60 clinics will close, it is not clear how many retail stores will be the subject of next year. In June, however, the company announced its intention to close 150 locations in the United States.
According to Axios, in addition to closing stores, Walgreens also adapted store hours, stopping all non -essential projects at the headquarters, forcing all the workers remotely to be back in the office in November, investing in micro centers -Numéros and by reducing the excess inventory.
Better life Contacted Walgreens to comment, and will update history with his answer.
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Rite Aid is also in trouble.
While things seem dark for Walgreens, Rite Aid is not going well either. On October 15, the company filed a request for protection against the bankruptcy of Chapter 11, confirming that lenders provide $ 3.45 billion for support during reorganization, according to a company Press release .
"Rite Aid has served customers and communities across our country for over 60 years, and the important actions that we take today will allow us to move forward as a stronger business," said The new CEO Jeffrey S. Stein , which was appointed as part of the restructuring, said in the press release.
Stein continued: "With the support of our lenders, we are impatient to strengthen our financial foundation, to advance our transformation initiatives and to accelerate the execution of our recovery strategy. In doing so, we will be even better able to to provide health products and services Our customers and their families count on - now and in the future. "
According to CNN, Rite Aid is faced with its own expensive proceedings to allegedly fulfill illegal prescriptions for controlled substances, including opioids , which aggravated the need for a bankruptcy deposit.
Rite Aid also closes stores, but he did not confirm a number.
As part of the bankruptcy deposit, Rite Aid also confirmed that it "would accelerate the optimization plan for the company's stores and close the sub-performative stores. The company noted that this would reduce expenses rent and strengthen financial performance.
Currently, there are 2,100 remaining rite aid locations in 17 American states, but it is not yet clear how many of these will be closed or when.
In a declaration provided to Better life , said the company: "Rite Aid regularly assesses its retail footprint to ensure that we are effectively operating while meeting the needs of our customers, communities and associates. In conjunction with the process supervised by the court, we have 'intention to close certain underperforming stores to deepen the proceedings Advance to reduce the costs of rent and strengthen overall financial performance. "
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