(WHTM) – Rite Aid, one of the largest pharmacy chains in the country once headquartered in Cumberland County, says they are filing for Chapter 11 bankruptcy and will continue to close underperforming stores.

In an announcement on Sunday, Rite Aid says they have “reached an agreement in principle with certain of its senior secured noteholders on the terms of a financial restructuring plan that will allow the Company to accelerate its ongoing business transformation.”

The company says the restructuring plan will reduce debt and increase financial flexibility through a court-supervised process.

Rite Aid says they “will work to transfer prescriptions accordingly so that there is no disruption of services” and transfer employees to other locations when possible.

The company says they have filed motions in court “to support its operations, including the payment of employee wages, salaries and benefits without interruption” during the bankruptcy process.

Rite Aid says they’ve also received $3.45 billion in new investing from lenders and appointed Jeffrey S. Stein as Chief Executive Officer, Chief Restructuring Officer, and a member of the Company’s Board of Directors.

“Rite Aid has served customers and communities across our country for more than 60 years, and the important actions we are taking today will enable us to move ahead as a stronger company,” said Stein. “With the support of our lenders, we look forward to strengthening our financial foundation, advancing our transformation initiatives and accelerating the execution of our turnaround strategy. In doing so, we will be even better able to deliver the healthcare products and services our customers and their families rely on – now and into the future.”

Stein says the company will work with landlords to assess their footprint across the country.

“We remain focused on serving our customers and communities, and we are grateful that they continue to choose our stores and pharmacies for their healthcare needs. We thank our associates for their ongoing hard work and dedication, and we extend our gratitude to our partners, suppliers and vendors for their continued support.”

Founded in Scranton and headquartered in Camp Hill for decades, Rite Aid relocated to Philadelphia in July 2022. Several local stores, including one in Camp Hill, have closed in recent weeks leading up to the bankruptcy announcement.

Over the past five years, Rite Aid’s stock price has dropped more than 96%.