Tag: business closings

Rite Aid is closing nearly 100 stores as part of its bankruptcy. See the list | CNN Business
New York
CNN
—

Rite Aid, which had filed for Chapter 11 bankruptcy protection, is now preparing to shed almost 100 stores nationwide as part of its restructuring efforts.

The first tranche of stores to be sold — both leased and owned — is located in nine states, according to A&G Real Estate Partners, which is advising the drug store chain on its real estate portfolio. The states include California (17 stores), Maryland (4), Michigan (16), New Jersey (8), New York (17), Ohio (4), Oregon (2), Pennsylvania (17), New Hamphire (2) and Washington (10), Alabama (1), Idaho (1).

The writing has been on the wall for some time for Rite Aid, the third-biggest standalone pharmacy chain in the US, as the entire drug store retail sector struggles to compete with Amazon and big-box chains like Walmart, Target and Costco moving deeper into the space and offering more customer-friendly alternatives to the nationwide pharmacy chains.

Compounding its problems were legal troubles stemming from accusations of filing unlawful opioid prescriptions for customers.

Rite Aid is in much worse financial shape than its competitors. Over the past six years, Rite Aid has tallied nearly $3 billion in losses.

While it has secured $3.5 billion in financing and debt reduction agreements from lenders to keep the company afloat through its bankruptcy, Rite Aid said it would accelerate store closures and sell off some of its businesses, including prescription benefit provider Elixir Solutions. Bankruptcy could also help resolve the company’s legal disputes at a vastly reduced cost.

As it reevaluates its portfolio of stores, these are the Rite Aid locations that are currently up for sale:
SEC Alabama Ave. & Pike St. in Monroeville, Alabama

920 East Valley Blvd in Alhambra, California

571 Bellevue Road in Atwater, California

3029 Harbor Blvd. in Costa Mesa, California

139 North Grand Ave. in Covina, California

20572 Homestead Road in Cupertino, California

24829 Del Pradoin Dana Point, California

7859 Firestone Blvd. in Downey, California

8509 Irvine Center Drive in Irvine, California

15800 Imperial Hwy. in La Mirada, California

30222 Crown Valley Pkwy. in Laguna Niguel, California

4046 South Centinela Ave. in Los Angeles, California

499 Alvarado St. in Monterey, California

1670 Main St. in Ramona, California

1309 Fulton Ave. in Sacramento, California

901 Soquel Ave. in Santa Cruz, California

19701 Yorba Linda Blvd. in Yorba Linda, California

25906 Newport Road in Menifee, California

1600 North Main St. in Meridian, Idaho

5808 Ritchie Hwy. in Baltimore, Maryland

5 Bel Air South Pkwy. in Bel Air, Maryland

728 East Pulaski Hwy. in Elkton, Maryland

7501 Ritchie Hwy. In Glen Burnie, Maryland

35250 South Gratiot Ave. in Clinton Township, Michigan

36485 Garfield Road. in Clinton Township, Michigan

1900 East 8 Mile Road. in Detroit, Michigan

25922 Middlebelt Road. in Farmington Hills, Michigan

924 West Main St. in Fremont, Michigan

715 South Clinton St. in Grand Ledge, Michigan

3100 East Michigan Ave. in Jackson, Michigan

15250 24 Mile Road in Macomb, Michigan

1243 U.S. 31 South in Manistee, Michigan

15181 Telegraph Road in Redford, Michigan

320 N Main St. in Redford, Michigan

51037 Van Dyke Ave. in Shelby Township, Michigan

109 North Whittemore St. in St. Johns, Michigan

102 North Centerville Road in Sturgis, Michigan

9155 Telegraph Road in Taylor, Michigan

47300 Pontiac Trail in Wixom, Michigan

205-209 Main St. in Berlin, New Hampshire

Grove St. and Route 101 in Peterborough, New Hampshire

37 Juliustown Road in Browns Mills, New Jersey

1426 Mount Ephraim Ave. in Camden, New Jersey

1636 Route 38, Suite 49 in Lumberton, New Jersey

210 Bridgeton Pike in Mantua, New Jersey

108 Swedesboro Road in Mullica Hill, New Jersey

Route 33 and Robbinsville- Edinburg Road in Robbinsville, New Jersey

773 Hamilton St. in Somerset, New Jersey

1434 South Black Horse Pike in Williamstown, New Jersey

836 Sunrise Hwy. in Bay Shore, New York

452 Main St. in Buffalo, New York

15 Arnold St. in Buffalo, New York

901 Merrick Road in Copiague, New York

577 Larkfield Road in East Northport, New York

2 Whitney Ave. in Floral Park, New York

115-10 Merrick Blvd. in Jamaica, New York

2453 Elmwood Ave. in Kenmore, New York

3131 Hempstead Turnpike in Levittown, New York

700-43 Patchogue-Yaphank in Medford, New York

4188 Broadway in New York, New York

195 8th Ave. in New York, New York

1033 St. Nicholas Ave. in New York, New York

593 Old Town Road in Port Jefferson, New York

101 Main St. in Sayville, New York

65 Route 111 in Smithtown, New York

397 Sunrise Hwy. in West Patchogue, New York

120 South Main St. in New Carlisle, Ohio

Euclid & Strathmore in East Cleveland, Ohio

1204 Gettysburg Ave. in Dayton, Ohio

2323 Broadview Road in Cleveland, Ohio

981 Medford Center in Medford, Oregon

4346 N.E. Cully Blvd. in Portland, Oregon

2722 West 9th St. in Chester, Pennsylvania

5990 University Blvd. in Coraopolis, Pennsylvania

1709 Liberty Ave. in Erie, Pennsylvania

6090 Route 30 in Greensburg, Pennsylvania

301 Eisenhower Drive in Hanover, Pennsylvania

1730 Wilmington Road in New Castle, Pennsylvania

700 Stevenson Blvd. in New Kensington, Pennsylvania

350 Main St. in Pennsburg, Pennsylvania

5612 North 5th St. in Philadelphia, Pennsylvania

2401 East Venango St. in Philadelphia, Pennsylvania

3000-02 Reed St. in Philadelphia, Pennsylvania

7941 Oxford Ave. in Philadelphia, Pennsylvania

136 North 63rd St. in Philadelphia, Pennsylvania

10 South Center St. in Pottsville, Pennsylvania

351 Brighton Ave. in Rochester, Pennsylvania

208 East Central Ave. in Titusville, Pennsylvania

SR 940 and Main St. in White Haven, Pennsylvania

3620 Factoria Blvd SE in Bellevue, Washington

11919 NE 8th St in Bellevue, Washington

222 Telegraph Road in Bellingham, Washington

1195 Boblett St. in Blaine, Washington

17125 SE 272nd St. in Covington, Washington

10103 Evergreen Way in Everett, Washington

2518 196th St SW in Lynnwood, Washington

3202 132nd St., S.E. in Mill Creek, Washington

601 South Grady Way in Renton, Washington

2707 Rainier Ave. in South Seattle, Washington
– CNN’s David Goldman contributed to this story
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October 18, 2023
FDIC sells most of failed Signature Bank to Flagstar | CNN Business

New York
CNN
—

A week after Signature Bank failed, the Federal Deposit Insurance Corporation said it has sold most of its deposits to Flagstar Bank, a subsidiary of New York Community Bank.

On Monday, Signature Bank’s 40 branches will begin operating as Flagstar Bank. Signature customers won’t need to make any changes to do their banking Monday.

New York Community Bank bought substantially all of Signature’s deposits and a total of $38.4 billion worth of the company’s assets. That includes $12.9 billion of Signature’s loans, which New York Community Bank purchased at a steep discount -— it paid just $2.7 billion for them. New York Community Bank also paid the FDIC stock that could be worth up to $300 million.

At the end of last year, Signature had more than $110 billion worth of assets, including $88.6 billion of deposits, showing how the run against the bank two weeks ago led to a massive decline in deposits.

Not included in the transaction is about $60 billion in other assets, which will remain in the FDIC’s receivership. It also doesn’t include $4 billion in deposits from Signature’s digital bank business.

As the banking crisis spreads, banks have grown increasingly wary of taking on risk. That’s likely why New York Community Bank was unwilling to take on all Signature’s assets.

“We are unsurprised the FDIC retained loans as we would expect banks to be cautious on quickly buying loans without liability and loss protections,” said Jaret Seiberg, analyst at TD Cowan. “More broadly, we see it as positive for consumer confidence for the branches to be opening Monday as NYCB branches.”

The FDIC said Sunday it expects to sell off those assets over time, and the total cost to the government will ultimately be about $2.5 billion.

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March 19, 2023
Bed Bath & Beyond is closing 150 more stores | CNN Business

New York
CNN
—

Bed Bath & Beyond is closing 150 more stores — just a week after the struggling retailer announced the closure of 87 locations.

The company’s brick-and-mortar footprint has already shrunk dramatically, a regulatory filing showed late Monday, and the new closings mean it will have shuttered 400 stores in the past year — almost half the 950 or so stores it had open in February 2022.

That includes last week’s announcement that it was also closing all 49 remaining Harmon Face Value stores, which sold cosmetics; plus 5 buybuy Baby locations. A list of the new store closures wasn’t immediately available.

A turnaround doesn’t look imminent: The embattled home goods chain forecasts first quarter sales to be down by 30% to 40% with “sequential, quarterly sales improvement thereafter” the filing said.

The company also said Monday it was planning to raise some $1 billion through an offering of preferred stock and warrants in a last-ditch effort to stave off bankruptcy. If it can’t complete the complex transaction, it would “likely file for bankruptcy protection.” It also appointed Holly Etlin, a bankruptcy expert, as interim chief financial officer.

The chain has said in recent weeks that it had defaulted on a loan and may not be able to remain in business, raising concerns about its future. Bed Bath & Beyond held talks in recent days with an investment firm to underwrite a significant portion of the proposed offering, according to Reuters.

Bed Bath and Beyond has been part of the meme stock phenomenon, with shares skyrocketing as much as 400% last year when activist investor and GameStop chairman Ryan Cohen took a stake and sought changes.

Shares of the retailer, which closed up 92% at $5.86 in a rollercoaster session Monday, were down 40% in in pre-market trading Tuesday.

Founded in 1971, Bed Bath & Beyond became a staple for affordable home decor, kitchenware and college dorm room furniture. It’s also known for its ubiquitous 20% off blue coupons, and cavernous stores with merchandise stacked high to the ceilings.

But the company struggled to make the transition to online shopping and fend off larger chains such as Walmart and Target

(TGT). Many shoppers switched to those competitors as the novelty of Bed Bath & Beyond’s coupons faded.

The company was also hit hard during the pandemic, closing stores temporarily during 2020 while rivals remained open. The company lost 17% of its sales in 2020 and 14% in 2021.

– Reuters contributed to this report

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February 7, 2023
Bank earnings fail to impress investors as recession worries rise | CNN Business

New York
CNN
—

JPMorgan Chase, Bank of America, Citigroup and asset management giant BlackRock posted results that topped Wall Street’s forecasts Friday, but investors were nonetheless a little disappointed at first.

Trading was choppy, with most bank stocks falling at the open before rebounding. Shares of JPMorgan Chase

(JPM) were up about 2.5% in late afternoon trading while BofA

(BAC) was up 2%. Wells Fargo

(WFC), which reported earnings that missed Wall Street’s targets, reversed earlier losses and was up 3%. Citi

(C) was up 2% while BlackRock

(BLK) was flat.

“The earnings were solid, but the market is concerned with recession fears,” said John Curran, managing director and head of North American bank coverage at MUFG.

Investors might have been concerned by the downbeat tone of the big banks. Executives are clearly still worried about inflation and the threat of a recession this year following several big interest rate hikes by the Federal Reserve.

JPMorgan Chase CEO Jamie Dimon said in the bank’s earnings statement that although the economy is still strong and that consumers and businesses are spending and healthy, “we still do not know the ultimate effect of the headwinds coming from geopolitical tensions including the war in Ukraine, the vulnerable state of energy and food supplies, persistent inflation that is eroding purchasing power and has pushed interest rates higher.”

The bank added in the earnings release that it now expects a “mild recession” as a base economic case. CFO Jeremy Barnum added during a conference call with reporters that in addition to the slowdown that has already started in its home lending unit, it is starting to see “headwinds” in auto lending.

Meanwhile, BofA CEO Brian Moynihan noted that this is “an increasingly slowing economic environment” and Wells Fargo CEO Charlie Scharf said “we are carefully watching the impact of higher rates on our customers.” Wells Fargo recently announced plans to pull back on its massive mortgage business.

Banks are clearly worried about a looming recession, and Wall Street has taken notice.

Moody’s Investors Service analyst Peter Nerby noted in a report that “credit provisions are rising” at JPMorgan Chase and that Citi “built capital and reserves in anticipation of a slowdown in core markets.”

The Fed’s rate hikes aren’t helping either.

“Higher than expected interest rates pose a significant risk to the outlook for credit quality, loan growth and net interest margins,” said David Wagner, a portfolio manager at Aptus Capital Advisors, in an email.

Concerns about the economy were one reason why stocks plunged in 2022, suffering their worst year since 2008. As a result of the Wall Street slump, there was a major slowdown in merger activity and initial public offerings.

That hurt the investment banking businesses for the top banks. JPMorgan Chase and Citi each said that advisory fees plummeted nearly 60% in the quarter.

Goldman Sachs

(GS) and Morgan Stanley

(MS) will give more color about the health of Wall Street next Tuesday when they both report their fourth quarter results.

Goldman Sachs, which has aggressively built up a consumer banking unit over the past few years, has struggled to make money in that division. Goldman Sachs disclosed in a regulatory filing Friday that it has lost more than $3 billion in its consumer business since 2020.

There were some signs of optimism though. BlackRock, which owns the massive iShares family of exchange-traded funds, reported a rebound in assets under management from the third quarter to the fourth quarter as stocks soared in October and November.

“The current environment offers incredible opportunities for long-term investors,” said BlackRock CEO Larry Fink in the earnings release.

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January 13, 2023
Justice Department sues pharmaceutical company for allegedly failing to report suspicious opioid sales | CNN Politics

Washington
CNN
—

The Justice Department on Thursday alleged that the AmerisourceBergen Corporation, one of the country’s largest pharmaceutical distributors, and two of its subsidiaries failed to report hundreds of thousands of suspicious prescription opioid orders to pharmacies across the country.

The lawsuit, which spans several states, alleges that AmerisourceBergen disregarded its legal obligation to report orders of controlled substances to the Drug Enforcement Agency for nearly a decade. The company ignored “red flags” that pharmacies in West Virginia, New Jersey, Colorado and Florida were diverting opioids into illegal drug markets, the suit says.

“The Department of Justice is committed to holding accountable those who fueled the opioid crisis by flouting the law,” Associate Attorney General Vanita Gupta said in a statement Thursday.

“Companies distributing opioids are required to report suspicious orders to federal law enforcement. Our complaint alleges that AmerisourceBergen – which sold billions of units of prescription opioids over the past decade – repeatedly failed to comply with that requirement,” she added.

If AmerisourceBergen is found liable at trial, the company faces billions of dollars in financial penalties, the Justice Department said.

Lauren Esposito, a spokesperson for AmerisourceBergen, countered on Thursday in a statement that said the Justice Department’s complaint rested on “five pharmacies that were cherry picked out of the tens of thousands of pharmacies that use AmerisourceBergen as their wholesale distributor, while ignoring the absence of action from former administrators at the Drug Enforcement Administration – the DOJ’s own agency.”

She added: “With the vast quantity of information that AmerisourceBergen shared directly with the DEA with regards to these five pharmacies, the DEA still did not feel the need to take swift action itself – in fact, AmerisourceBergen terminated relationships with four of them before DEA ever took any enforcement action while two of the five pharmacies maintain their DEA controlled substance registration to this day.”

Yet AmerisourceBergen was allegedly aware that in two of the pharmacies, drugs it distributed were likely being sold in parking lots for cash, the Justice Department said. In another pharmacy, the company was allegedly warned that patients likely suffering from addiction were receiving opioids, including some people who later died of a drug overdose.

The Justice Department also noted in its lawsuit that AmerisourceBergen’s reporting systems for suspicious opioid orders were deeply inadequate, and that the company intentionally changed its reporting systems to reduce the number of orders flagged as suspicious amid the opioid epidemic.

Even when orders were flagged as suspicious, AmerisourceBergen often didn’t report those orders to the DEA, according to the complaint.

Opioids are involved in the vast majority of drug overdose deaths, though synthetic opioids – particularly fentanyl – have played an outsized role. Synthetic opioids – excluding methadone – were involved in more than 72,000 overdose deaths in 2021, about two-thirds of all overdose deaths that year and more than triple the number from five years earlier.

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December 30, 2022