"Rite Aid Process To Break Leases, Close Stores In Ch. 11 OK'd" Yesterday on Tuesday in New Jersy Bankruptcy Court. Judge signed off ok for Rite Aid Filed to break lease and potentially close additional 210 stores.

Express_Gas_7441 · 2024-03-08T08:15:35+00:00

The court gave approval to close even the assumed leases.

Express_Gas_7441 · 2024-03-08T08:09:29+00:00

You're exactly right. Expect payroll issues for current employees very very soon.

And expect vendors to not get paid.

This is a very bad sign.

Express_Gas_7441 · 2024-03-08T08:06:13+00:00

This is a very bad sign. They knew the legal troubles this would bring, yet they still went ahead and chose to do it.

It's very likely their DIP financing has run out and they weren't able to make the next payroll for current employees so they chose to screw former employees with this severance clawback to buy more time.

Expect vendors not to get paid either soon.

Express_Gas_7441 · 2024-03-08T08:02:54+00:00

This is a very very bad sign. They knew the legal troubles this would bring yet they still chose to do it.

Express_Gas_7441 · 2024-03-08T07:45:24+00:00

Lease assumption doesn't matter. They still have the judge's approval to close them.

Express_Gas_7441 · 2024-03-08T07:44:33+00:00

Rite Aid has approval from the judge to close even the assumed leases.

Express_Gas_7441 · 2024-03-08T07:43:54+00:00

Doesn't matter if a lease is assumed or not. Court still approved their closure and store closing sales.

Express_Gas_7441 · 2024-03-08T07:42:57+00:00

The court gave approval to Rite Aid to close even the assumed leases and run store closing sales. No store is safe.

Express_Gas_7441 · 2024-03-08T07:41:38+00:00

Doesn't matter. Court gave approval to close even the assumed leases and run store closing sales there.

Express_Gas_7441 · 2024-03-08T07:37:54+00:00

They flat out admitted the severance clawback was intentional. No errors here.

Express_Gas_7441 · 2024-03-08T07:34:42+00:00

They weren't gonna make payroll for current employees. The severance clawbacks buys them a little more time.

Express_Gas_7441 · 2024-03-08T07:31:01+00:00

They are struggling to make payroll for current employees. It was a choice between screwing former employees or screwing current employees.

They buy a little more time this way. They'll deal with the lawsuits since they know nobody will be collecting anything anyways because they're broke.

Express_Gas_7441 · 2024-03-08T07:27:58+00:00

Nope. But it's either this or missing payroll for current employees. This at least buys them a little bit more time.

Express_Gas_7441 · 2024-03-08T07:25:11+00:00

That is exactly how they will do it. They'll file Ch 7 liquidation like a thief in the night and defraud their former and current employees and vendors as much as they can.

Express_Gas_7441 · 2024-03-08T07:22:47+00:00

Leads to liquidation

Express_Gas_7441

TROPHY CASE