Rite Aid to Lay Off Over 1,000 Employees in NJ and PA Amid Second Bankruptcy Filing
Rite Aid has announced plans to lay off 1,092 employees across New Jersey and Pennsylvania, with terminations beginning on June 4, 2025.
This information comes from a WARN notice filed with the New Jersey Department of Labor.
The layoffs are part of Rite Aid's second Chapter 11 bankruptcy filing in less than two years.
According to Reuters, the company cited ongoing financial challenges, including high debt, inflationary pressures, and increased competition, as reasons for the restructuring.
- In a letter to employees, CEO Matthew Schroeder stated that the company could no longer sustain its workforce due to financial constraints and lack of additional funding from lenders.
Rite Aid plans to sell its assets to one or more buyers during the bankruptcy process, aiming to minimize disruption to employees and customers.
As the CEO earlier said:
"As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible,"
The company has already begun closing stores, including all 178 locations in New York, as part of its reorganization plan.
The layoffs and store closures are expected to significantly impact communities in New Jersey and Pennsylvania, where Rite Aid has a prominent presence.
