Dive Brief:
- Rite Aid is permanently closing a distribution center in Wilsonville, Oregon, laying off 136 employees, according to a Worker Adjustment and Retraining Notification (WARN) Act letter filed Oct. 18.
- Layoffs are expected to begin in the first week of January and continue through April 5, 2024, which is when the facility is slated to close. A small number of employees will continue to work at the facility for a short period to perform closing duties.
- “After conducting a comprehensive analysis of our distribution network, we’ve made the difficult but necessary business decision to close our Wilsonville, Ore., Distribution Center, and transition operations to our Des Moines, Wash., Distribution Center to best support our stores and ensure greater efficiencies,” a Rite Aid spokesperson told Supply Chain Dive in an email.
Dive Insight:
The facility closure comes as Rite Aid looks to restructure its operations after filing for Chapter 11 bankruptcy in October. At the time of the filing, Rite Aid said that they “anticipate closing further stores and distribution centers during the postpetition period” as they look to downsize their operating footprint, according to the 1st day declaration.
Employees impacted by the closure include warehouse workers, routing coordinators, forklift operators and more, per the WARN filing. According to the spokesperson, “impacted associates working through the end of their transition period will receive severance packages, outplacement support and COBRA benefits.”
The drugstore chain operates seven distribution centers, per court documents.
Rite Aid shutters Wilsonville facility
As part of the bankruptcy process, Rite Aid filed a document on Oct. 16 asking to reject certain leases as the company restructures its real estate footprint. This included two unexpired leases in Wilsonville, Oregon.
Since its bankruptcy, Rite Aid has been working hard to keep and manage its relationships with suppliers in order to keep prescriptions and goods moving. Last week, the drugstore chain was granted interim court settlement approval to resolve a supply contract dispute with its largest pharmacy supplier, McKesson.
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