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Michigan NewsRite Aid to close Pontiac distribution hub, cut 200 jobs by mid-August

Rite Aid to close Pontiac distribution hub, cut 200 jobs by mid-August

Lansing, Michigan – The well-known chain of pharmacies, Rite Aid, is closing its Pontiac distribution hub, which would cause about 200 staff layoffs. Based on the notice sent to the state authorities, this major action is set for August 16.

The closing of the Pontiac distribution center will impact 191 workers, therefore signifying yet another round of Rite Aid’s continuous bankruptcy processes. Since mid-October, the company has been negotiating Chapter 11 bankruptcy; this process has already seen the closing of about 200 stores around the country, including several in Michigan.

Not too long ago, on June 20, Rite Aid turned in proposals to eliminate twelve more Michigan locations. The impacted sites are stores in Ludington and Spring Lake. Despite these closures, doubt hangs over the fate of the remaining Rite Aid locations around the state. Though this particular site is not among the 12 scheduled for closure, a notice outside a Lansing store indicates that all Rite Aid stores in Michigan might eventually close.

The well-known chain of pharmacies, Rite Aid, is closing its Pontiac distribution hub, which would cause about 200 staff layoffs.
Courtesy of Rite Aid

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According to its website, Rite Aid now runs 1,500 outlets spread over 16 states. However, the company has struggled with financial stability, posting consecutive losses for several years. Contributing to its challenges are the costly opioid lawsuits and the increasingly competitive pharmacy landscape.

The planned closing of the Pontiac distribution center and the layoffs of 191 staff highlight the extreme steps Rite Aid is implementing to try to reorganize and balance its activities. Reflecting the larger challenges the business faces, the effects on the local community and the livelihoods of individuals working at the center cannot be underestimated.

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The future of Rite Aid’s surviving stores—especially the 185 sites in Michigan—remains unknown as it works to come out of bankruptcy. Both consumers and staff members are ready for more announcements, hoping for clarity in the middle of this stormy phase for the chain of pharmacies.