Many retailers that have gone out of business only have their management’s decisions to blame. Companies like Toys R Us and Bed Bath & Beyond took on too much debt and were never able to free up the cash to invest in a successful strategy.
It’s easy to blame the internet, but the reality is that nearly 85% of retail sales still take place in brick-and-mortar stores. Amazon has taken meaningful business from physical stores, but many people still want to shop in person.
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There are lots of items where next-day or even waiting on same-day delivery may not be fat enough. Pharmacies should be one of those businesses, but all the major chains have struggled.
Rite Aid has been in Chapter 11 bankruptcy since October and has closed nearly 700 locations. CVS (CVS) and Walgreens (WBA) have managed to stay solvent, but both companies have been closing stores as well.
That’s partially something that can be blamed on Covid. The pandemic caused a population shift and that left thousands of pharmacies in locations that lack audience. If you used to pick up your prescription, and maybe a snack, at a pharmacy during your lunch break and you now no longer go into the office most days, that makes it hard for those locations to thrive.
Now, another pharmacy chain that also operates an array of services for older Americans is facing financial distress.
CVS has been closing select locations as well.
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Guardian Pharmacy operates a complex business
Guardian serves a different clientele than CVS, Walgreens, and Rite Aid, or at least it specializes in a different area.
“At Guardian Pharmacy Services, we are reimagining medication management and transforming care. As one of the nation’s leading long-term care pharmacy services companies, our mission is to enrich lives,” the company shared on its website. “We promote health and wellness for older adults and individuals with complex care needs, alleviate burdens for caregivers, and provide an engaging, purpose-filled workplace for pharmacy professionals.”
The company operates pharmacies nationwide that are locally operated. It has 48 locations in 35 states and employs over 3,100 people.
“Our national network of pharmacies offers high-touch, innovative services that benefit residents in complex care settings, such as assisted living, mental and behavioral health, post-acute and long-term care, and hospice, as well as community providers that support individuals with intellectual and developmental disabilities,” the company shared.
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Guardian Pharmacy files Chapter 11 bankruptcy
Guardian Pharmacy filed for Chapter 11 bankruptcy protection on July 29 in the United States Bankruptcy Court of the Western District of Pennsylvania. In the filing, it reported both assets and debts of between $1 million and $10 million.
It also reported that it had between 1 and 49 creditors and funds would be available for unsecured creditors. The filing names dozens of subsidiaries and related businesses that are covered by the filing.
Guardian reported owing the Pennsylvania Department of Human Services nearly $27 million. It also owes Highmark Blue Shield over $3.3 million, according to the filing.
The company has a strong tradition of being part of the communities it serves.
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“Twenty years ago, our founders — Fred Burke, David Morris, and Kendall Forbes —realized that pharmacy management teams who receive significant ownership and authority to run their businesses at the local level can achieve more efficient operations and deliver more personalized, community-centered pharmacy care,” it shared.
The company did not return a request for comment made to the public relations address listed on its website. No financial plan was filed as part of its Chapter 11 bankruptcy petition.
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