YOUNGSTOWN, Ohio Phar-Mor Inc. and some of its affiliates filed for Chapter 11 bankruptcy protection, the second time the discount drugstore chain has gone into bankruptcy court since 1992.
As part of its restructuring, announced Monday, Phar-Mor plans to close about 65 of its 139 stores over the next several weeks. It intends to operate the remaining stores, while reducing corporate costs.
The company did not say which stores will close. Spokesman Gary Holmes said that information will be filed with the U.S. Bankruptcy Court in about a week.
Phar-Mor also has not disclosed how many employees will lose their jobs. A typical Phar-Mor store has 10 to 15 full-time employees along with part-time workers. Presently, Phar-Mor has 6,125 employees, and about 3,600 of those work full time.
The company's stores operate under the names Phar-Mor, Pharmhouse and The Rx Place in 24 states.
Phar-Mor is seeking the court's supervision while it restructures with $135 million of financing through Fleet Retail Finance, Phar-Mor's primary secured lender.
Abbey Butler and Melvyn Estrin, Phar-Mor's co-chairmen and co-chief executives, blamed a slowing economy, changes in consumer buying and increased competition from larger retail chains for the filing.
"The company plans to quickly emerge from bankruptcy with a strong regional presence in its core markets of operation," they said in a statement.
Under Chapter 11, a company can continue to operate its business and manage its assets while it devises a restructuring plan.