Rite Aid Store Closings

[ClownLoach]

Here's more information about the CEO situation, and what could/should be the end of the bankruptcy.

The CEO is paid $300K per month for two roles: CEO and Chief Restructuring Officer.

He is due a $20M payment if the company is successful in exiting bankruptcy.

Those were the terms under which he was hired. So yes, the creditors (who we must remember are the ones in charge of everything in this bankruptcy including the CEO) are basically trying to renege on his pay.

Knowing that, I still think he is due the payment but I think there should be some stipulations put in place, such as he gets X percent per year as long as the company stays in business and doesn't require bankruptcy. That would be fair to everyone.

Anyway, the hearing that should end the bankruptcy is scheduled June 28th and 29th.

https://www.thestreet.com/retail/big-re ... uptcy-exit

[storewanderer]

They're using this CEO pay as a scapegoat for the issues with the go forward operation notably lack of inventory and huge cash infusion needed to get inventory.

Let's see what happens between now and the end of the month.

$20 million is nothing in the grand scheme of things. That's less than a dozen closed store prescription file sales. There is no way they'd let this thing fail to save the $20 million. Unless they just want it to fail... but if it fails it won't be because of this CEO and the $20 million bankruptcy exit incentive bonus.

[Retailuser]

1,169 now. Less and less.
Not good for the chain.

[ClownLoach]

1,169 now. Less and less.
Not good for the chain.

I don't think that's an accurate figure as it's 500 less than the last update a few weeks ago.

[Retailuser]

Sorry for the typo it is 1,619 not 1,169.

[storewanderer]

It appears Walgreens has bid for certain assets of Rite Aid. It isn't exactly clear what. It seems to include pharmacy assets. It says it excludes all front end inventory and equipment...

It appears according to docket 3793 that $100 million of pharmacy inventory. Quote from docket 3793
"As noted in the Notice of Successful Bidder, the Debtors now seek entry of the
proposed Order for approval of the Walgreens APA and consummation of the sale of the Acquired
Assets. As more fully set forth in the Walgreens APA, I understand that the Debtors will sell the
Acquired Assets (as defined in section 1.1 of the Walgreens APA), consisting of certain
pharmaceutical inventory of the Debtors, to the Purchaser in exchange for up to approximately
$100 million in cash consideration, subject to certain adjustments in accordance with the terms of
the Walgreens APA."

There will be a hearing on this in June 20.

[ClownLoach]

It appears Walgreens has bid for certain assets of Rite Aid. It isn't exactly clear what. It seems to include pharmacy assets. It says it excludes all front end inventory and equipment...

It appears according to docket 3793 that $100 million of pharmacy inventory. Quote from docket 3793
"As noted in the Notice of Successful Bidder, the Debtors now seek entry of the
proposed Order for approval of the Walgreens APA and consummation of the sale of the Acquired
Assets. As more fully set forth in the Walgreens APA, I understand that the Debtors will sell the
Acquired Assets (as defined in section 1.1 of the Walgreens APA), consisting of certain
pharmaceutical inventory of the Debtors, to the Purchaser in exchange for up to approximately
$100 million in cash consideration, subject to certain adjustments in accordance with the terms of
the Walgreens APA."

There will be a hearing on this in June 20.

Sounds like it answers itself? "Certain pharmaceutical inventory." They probably have an abundance of certain drugs after closing so many stores that need to be moved before expiration. Walgreens or CVS would be the only buyers for lots like that.

[reymann]

Also doesn't help that more people have begun transferring their prescriptions to other stores.

[storewanderer]

Sounds like it answers itself? "Certain pharmaceutical inventory." They probably have an abundance of certain drugs after closing so many stores that need to be moved before expiration. Walgreens or CVS would be the only buyers for lots like that.

All inventory from pharmacy at closing stores was returned to McKesson when the stores closed.

[storewanderer]

Visited Rite Aid today. Store conditions continue to deteriorate. The store is so empty of merchandise it looks more than halfway through a going out of business sale. The employees seemed depressed and bored. Some categories like men's shave, toothpaste, men's deodorant, men's body wash were like 90% out of stock. Grocery about 85% out of stock. I have not seen anything like this before outside a liquidation sale. Even the shampoo category was less than 50% in stock.

One thing is I did feel like they have restocked some Rite Aid brand products. There seemed to be more Rite Aid vitamins than a couple weeks ago, and more Rite Aid first aid products than a couple weeks ago.

I've been reading about IT issues on other threads, not sure about any of that, I had no issues today with coupon usage/Bonus Cash redemption/Bonus Cash earning/sale items scanning.