Rosenberg & Estis Bankruptcy Team Preparing Clients for Impact of Potential Closings by CVS, Walgreens, Rite Aid and WeWork

by | Sep 28, 2023 | Industry Updates

Major Drugstore Chain CVS Reportedly Prepares to Close Up to 900 Stores

CVS, the largest drugstore chain in the United States, reportedly prepares to close as many as 900 stores across the country in connection with a consolidation plan. CVS has nearly 10,000 stores in the U.S., including hundreds in New York, that could be impacted. Major Drugstore Chain Walgreens Reportedly Prepares to Close Up to 150 Stores The second largest drugstore chain in the U.S. – Walgreens – reportedly prepares to close 150 stores across the country. Walgreens has nearly 9,000 stores in the U.S., including hundreds in New York, that could be impacted.

Major Drugstore Chain Rite Aid Reportedly Prepares to Close Up to 500 Stores in Bankruptcy

Rite Aid Corporation is a nationwide drugstore chain that ranked No. 148 in the Fortune 500 list of the largest U.S. corporations by total revenue. Now the company reportedly prepares to close up to 500 stores in connection with a Chapter 11 bankruptcy proceeding to restructure its $3.3 billion debt and to better protect against lawsuits alleging the company helped fuel the country’s opioid crisis. Rite Aid reportedly operates more than 2,330 stores in 17 states which could be impacted in one way or another by its bankruptcy filing.

Building Value Losses Attributable to WeWork’s Demise Could Be Billions of Dollars

WeWork continues to warn of its potential bankruptcy filing as it reportedly retained professionals for bankruptcy or other restructuring options. WeWork reportedly has hundreds of locations in the U.S., many of which are located in New York, that would be impacted by its bankruptcy filing. Analysts now predict that billions of dollars of office building value losses could be attributable to WeWork if WeWork is unable to continue. R&E’s Head of Bankruptcy & Reorganization, John D. Giampolo, was quoted in a recent Bisnow article regarding WeWork’s potential bankruptcy filing.

How to Protect Yourself

R&E frequently represents landlords, lenders and other parties in such major retail bankruptcies, as well as middle market size bankruptcies across various industries, to assess their risks and rights and to formulate strategies for recovery and liquidity concerns, including how best to access and apply security deposits or letters of credit, as well as other businesses concerned about the present and potential future impact of the unique challenges faced in the current economic climate. Accordingly, now would be a good time for you to conduct a review of any contract, loan and/or security agreements with any potentially troubled counterparties. Feel free to contact your trusted R&E attorney or John D. Giampolo, Member & Head of the firm’s Bankruptcy & Reorganization Department, to assess your risks and rights, to assist with any lease review and to formulate strategies to best serve you.