UFCW Developing Rapid Response to Assist Impacted Members

Citing “the dramatic downturn in the economy”, tariffs and increased costs, Rite Aid has filed a second Chapter 11 bankruptcy. The company has told the bankruptcy court that it will close all its California stores including those in Local 5’s jurisdiction. Per the court filing, they intend to sale off assets through a court approved auction. The asset sale could include selling stores to another entity to continue operations.

UFCW locals from across the country met earlier this month to discuss a response and a plan to provide resources to impacted members.

Local 5 President John Frahm lamented the news but assured members that the union would rigorously pursue the company’s legal obligation to bargain over the impact of the closures.

“Rite Aid members have been an important part of our union for more than half a century and it is a company where many of them have dedicated their lives to long careers in the health care industry,” Frahm said. “We will do everything in our power to protect their rights and assist them during this difficult transition”.

UFCW 5 will be working with the Employment Development Department’s rapid response network to assist any members impacted by potential store closures.

More detailed information will be provided when it is available.