Friday, April 3, 2009

Rite Aid to Close Newnan, GA, Distribution Center in September 2009

(BUSINESS WIRE)--Rite Aid Corporation (NYSE:RAD) announced today that it is closing its distribution center in Newnan, Georgia. Closing is expected to be in late September.

The 297 associates employed at the facility and local and state officials are being notified today of the closing pursuant to the federal Worker Adjustment and Retraining Notification (WARN) Act. All associates will receive severance and outplacement services.

Rite Aid acquired the Newnan facility in June 2007 with its purchase of approximately 1,800 Brooks Eckerd stores and six distribution centers. The company said at the time of the acquisition that once all of the Brooks Eckerd stores were integrated into Rite Aid, it would look for opportunities to consolidate the distribution activities of its 14 distribution centers. The decision to close the Newnan facility is also part of Rite Aid’s initiative to improve operational efficiency throughout the company.

The 194 stores served by the Newnan distribution center will be served by other Rite Aid distribution centers.

“We have an excellent and dedicated workforce at the distribution center in Newnan, and they did an outstanding job during the integration of the Brooks Eckerd drugstore chain into Rite Aid,” said Wilson A. Lester, Jr., Rite Aid Senior Vice President, Supply Chain. “This closing has no reflection on them or the quality of their work, and we will do everything we can to assist them with finding new positions.”

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