Rite Aid's Knolls Crescent store remains open despite stock issues amid bankruptcy restructuring

As far as we know, the [Rite Aid pharmacies] that are currently open will be so going forward.”

Former Knolls crescent Rite Aid employee

The Rite Aid store located on Knolls Crescent, despite its dwindling stock, will not be closing in the foreseeable future.

Last month, Rite Aid announced plans it will transition into a private company under new leadership, after filing for Chapter 11 bankruptcy protection last October.

During the bankruptcy process, more than 250 locations around the city were shuttered — including the Rite Aid on 238th Street and Broadway — around a quarter of the company’s total pharmacies.

In a news release from September, the company said it restructured into a private company with a “rightsized store footprint, more efficient operating model, significantly less debt and additional financial resources.”

Since March 2023, the pharmacy chain has grappled with lawsuits over unlawful opioid prescriptions and mounting debt from declining business. As part of its effort to emerge from bankruptcy, Rite Aid cut about $2 billion in debt and secured an additional $2.5 billion in exit financing. 

Though the current manager at the Knolls Crescent location declined to comment for this story, a former associate said, for the foreseeable future, the store will remain open.

“The stores that are supposed to be closed are already closed,” the former employee said, “So, as far as we know, the ones that are currently open will (remain) so going forward.”

Despite staying operational, the former associate said the Knolls Crescent store has experienced some logistical challenges. Deliveries, which once arrived weekly, are now being scheduled every two weeks.

On the day of the The Press’s visit, a customer pointed out many essentials, including toothpaste and facial tissues, were entirely unavailable at the Knolls Crescent location. 

Some shelves were nearly barren from the top down, particularly those in the beauty and personal care section. 

“Just look around,” another customer said, “You can see the sparse shelves, big gaps.”

A third customer found enough vitamins were missing they started shopping for health goods elsewhere. 

However, several customers the stock has been better in recent weeks. Similarly, the former emplyee said shoplifting has been substantially curbed due to new glass cases around select shelves.

While some customers expressed worry about the shoplifting, most were ultimately concerned about the potential impact of the stock shortages, even if they’re only temporary.

Senior residents of nearby co-ops and apartment buildings, including the Knolls Cooperative and towers at Kappock Street, rely on the pharmacy for basic household and medical necessities.

The building has been part of the community for years — formerly a C-Town grocery store. A prolonged shortage could force residents, many of whom experience mobility issues, to travel further to obtain these items from other pharmacies, which could pose a significant challenge in emergencies.

The former associate said some in the community have been inquisitive about the store’s future, but it has not greatly influenced store traffic — they have still witnessed a consistent flow of regulars throughout the company’s changes.

Rite Aid corporate could not be reached for comment at press time.