A store with pharmacy services is shutting down its operation across the South.
Rite Aids across Tennessee, including Elizabethton’s store located at 507 West Elk Ave., are shutting their doors after a recent business deal with Walgreens. The Ride Aid in Elizabethton is currently owned by Walgreens, according to Rite Aid’s media department, and an official with Walgreens confirmed the closure with the Elizabethton Star on Monday, July 16.
“As announced last October, we will be closing some store locations to help ensure we have the right stores in the right locations to create a more focused network of stores that can deliver the greatest value for our customers,” James W. Graham, Walgreens’ senior manager for media relations, said Monday. “We do plan to close the Walgreens-owned Rite Aid store ( in Elizabethton). The pharmacy’s last day of business will be Aug. 7. After that, patient’s prescription records will be available at the Walgreens located at 214 Broad Street. Walgreens is notifying patients and customers of this change.
“The store will remain open for about two weeks after the pharmacy closes to allow for the final sale of all products,” Graham continued. “ We are committed to taking care of our team members throughout this process, and expect to have positions at other locations for the majority of store employees who are impacted. We will be making every effort to find the same or similar positions for team members.”
Tennessee is one of 12 states that will no longer be the home of a Rite Aid store following a deal with Walgreens Boots Alliance. According to the Rite Aid website, the deal included that 1,932 stores and related assets were transferred to WBA “in exchange for cash proceeds of $4.157 billion.”
The deal was completed Wednesday, March 28. Rite Aid indicated that the “transfer of three distribution centers and related inventory is expected to begin after Sept. 1.”
Previously, the companies were expecting to enter into a merger as of 2015. The merger was effectively terminated with the first announcement of the sell taking place in 2017. Rite Aids will still be featured in other parts of the country.
According to Rite Aid, the majority of the closing conditions on the deal have been satisfied and that “the transfers of Rite Aid distribution centers and related assets remain subject to minimal customary closing conditions applicable only to the distribution centers being transferred at such distribution center closing, as specified in the Asset Purchasing Agreement.”
The company also recently announced that the board of directors have terminated the tax benefits preservation plan (the “plan”) that it adopted on January 3, 2018. According to Rite Aid the plan for the company protected “approximately $2.2 billion of Rite Aid’s net operating losses” and that the plan was originally scheduled to expire early 2019.
The deal with Walgreens isn’t the only item Rite Aid has dabbled with this year. The company announced it will hold a stockholder meeting on Aug. 9 to vote on a proposed merger with Albertsons Companies, Inc.