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Following its bankruptcy protection filing, drug store chain Rite Aid has announced the auction of leases on dozens of its stores across the nation. The move includes six locations in New Jersey and at least seventeen in New York state.
The Garden State locations up for auction include Lumberton, Somerset, Williamstown, Mantua, Mullica Hill, and Robbinsville. The company has not disclosed the complete list of locations yet.
In New York, Rite Aid stores in Buffalo, New York City, and Long Island are among those being auctioned. The company is yet to reveal the full list of New York locations up for sale.
This decision comes as part of Rite Aid’s strategy to offload underperforming stores in an attempt to streamline its operations and recover from financial distress. Nationwide, Rite Aid is selling leases to 78 underperforming stores across nine states. In addition to these leased properties, 21 fee-owned stores across eleven states are also on the selling block.
Rite Aid’s decision to auction store leases is seen as a significant step towards restructuring its business model and financial recovery. The proceeds from the auctions will likely be used to pay off debts and invest in profitable ventures.