2 Major National Chains Emerge from Bankruptcy, No More Closures!

Two major chains that closed dozens of locations across New York confirmed they are emerging from bankruptcy.

It’s been a rough year for national retailers and restaurants. It seemed every industry was struggling, from dollar stores to major flooring chains. Many of them were forced into bankruptcy proceedings.

This led to many store closures across Central New York, with Rome losing teen clothing retailer Rue 21 to practically all Big Lots closing in the Mohawk Valley.

While some chains were forced to stop operating entirely, others were able to get their affairs in order.

This leads us to some very happy news for pharmacy and seafood fans! Rite Aid and Red Lobster, both major chains that were forced to close many stores across New York, announced they are emerging from bankruptcy.

In an email to customers, Rite Aid announced the news that its tumultuous time in bankruptcy limbo has come to a positive conclusion.

The major pharmacy chain was able to secure fresh financing after being devastated by lawsuits stemming from the opioid crisis. Although Rite Aid closed more than 520 locations nationwide, the company picked Matt Schroeder as its new CEO to help see it through restructuring and bankruptcy.

Said the chain,

As we restock our stores and maintain a focus on what matters to you, we ask for your patience, your patronage and your support. Every step we take is to make things right in our stores, in our communities and in your lives.

Red Lobster is another chain that’s celebrating a renewed future, announcing that its Chapter 11 bankruptcy plan was rubber stamped for approval.

The famous seafood chain will be sold to new owners and appointed a new CEO in Damola Adamolekun, who replaces longtime CEO Jonathan Tibus.

Said Adamolekun:

With our new backers, we have a comprehensive and long-term investment plan – including a commitment of more than $60 million in new funding – that will help to reinvigorate the iconic brand while keeping the best of its history.

Red Lobsters remaining 544 locations appear to be spared from shuttering, including the restaurant in New Hartford.

So, there you have it, it seems no more closures are in the future for Red Lobster and Rite Aid.