A Rite Aid distribution center in Harford County, Maryland, is expected to lay off more than 300 workers and close its doors after the Pennsylvania-based pharmacy filed for bankruptcy for a second time. The company announced that it filed for Chapter 11 on May 5.
Rite Aid announces second bankruptcy filing
For now, company leaders said customers will still be able to access pharmacy services and products, though they are working to transfer customers' prescriptions to other pharmacies. "While we have continued to face financial challenges, intensified by the rapidly evolving retail and healthcare landscapes in which we operate, we are encouraged by meaningful interest from a number of potential national and regional strategic acquirors," said Rite Aid CEO Matt Schroeder. The company initially filed for bankruptcy in October 2023 and planned to restructure the business. It started the process with over 2,300 stores in 17 states and shrunk to 1,245 in 15 states. According to
Maryland's Department of Labor, Rite Aid will close its Mid-Atlantic distribution center in Aberdeen and lay off a total of 363 employees on June 5. Rite Aid is one of the biggest employers in Harford County with more than 900 workers, according to our partners at
The Baltimore Banner . The Banner reported that Rite Aid is also looking to close 23 properties in Maryland.
Rite Aid closure comes amid federal workforce cuts in Maryland
The Rite Aid layoffs in Harford County come as Maryland has experienced a wave of layoffs targeting federal workers. The layoffs, efforted by the Trump administration's Department of Government Efficiency, or DOGE, aim to reduce the size of the federal workforce and cut government spending. The large number of layoffs sparked concerns for local and state leaders and prompted some to bolster resources for out-of-work residents. Recently, Maryland Comptroller Brooke Lierman raised concerns about the
layoffs of 10,000 people from the U.S. Department of Health and Human Services (HHS), saying the move could disproportionally impact the state. According to Gov. Wes Moore's Office, Maryland has about 160,000 federal civilian employees, making up about 6% of jobs in the state.
2018 Rite Aid distribution center mass shooting
In 2018, the Rite Aid distribution center was the
scene of a mass shooting that left three people dead and three injured. According to police, the shooting was carried out by a 26-year-old woman who fired at her coworkers with a handgun before fatally shooting herself. She was a temporary employee at the distribution center.
