Rite Aid plans to lay off thousands of workers in Pa. and N.J. amid bankruptcy

Thousands of Pennsylvania and New Jersey workers are expected to lose their jobs amid Rite Aid‘s bankruptcy, according to layoff notices filed in each state.

Over 1,000 Pennsylvania workers employed at the company’s "remote" headquarters in Philadelphia’s Navy Yard and at an office in Etters, York County, will be laid off in two waves. The first wave was scheduled for May 5, and the next one is planned to begin on June 4, according to the notice.

The company announced that 501 jobs will be eliminated at the Etters location and 595 at the Philadelphia headquarters. Positions that will be cut include analysts, buyers, field clinical coordinators, and senior store asset protection leaders.

That layoff notice in Pennsylvania does not seem to account for employees at the more than 300 stores across the commonwealth.

In New Jersey, about 1,100 employees, including store managers and pharmacists, are expected to be laid off across the state starting June 4, according to layoff information provided to the state.

Stores are expected to begin closing June 4 and continue on a rolling basis.

The Philadelphia-based pharmacy chain has shrunk its presence in the region in recent years and filed for bankruptcy this week — for the second time in less than two years. The company plans to close or sell all of its stores.

“Rite Aid has been actively seeking capital, including negotiating with its lenders for additional capital to continue to run its business,” Matthew C. Schroeder, CEO of the company, said in the Pennsylvania layoff notice dated May 5. “Unfortunately, our efforts were unsuccessful.”

Schroeder noted in his letter that a “significant vendor” for the company had recently notified them that they were shortening and restricting their payment terms. The company’s lenders also told Rite Aid that if the company maintained its workforce at the current size, they would not provide funding for payroll and other related expenses.

“In addition, the dramatic downturn in the economy, potential litigation, and increased costs (including tariffs) from our suppliers and landlords have necessitated employee separations that were unforeseen, as we were actively seeking funding and pursuing several alternative strategic transactions with the hope that this action could be avoided or postponed,” he said.

The pharmacy chain has 345 locations in Pennsylvania and 60 in New Jersey as of Monday according to its website.

The company says on its website that it employs over 51,000 people.