Ceremony Support has shuttered all of its shops after greater than six many years in enterprise.
The pharmacy chain made the announcement in a post on its web site, stating, “All Ceremony Support shops have now closed. We thank our loyal clients for his or her a few years of assist.”
ABC Information has reached out to the corporate for remark, however didn’t instantly hear again.
Regardless of its lengthy historical past within the pharmacy business, Ceremony Support has confronted mounting monetary challenges lately. The corporate most not too long ago filed for bankruptcy protection in Could, simply eight months after rising from a earlier Chapter 11 submitting in September 2024.
On the time, Ceremony Support — which operated greater than 1,200 shops throughout 15 states from California to Vermont — mentioned it deliberate to maintain shops open whereas promoting off property to keep away from disrupting clients’ prescription companies.
The corporate additionally introduced it had secured $1.94 billion in new financing from present lenders to remain operational throughout chapter proceedings.
A Ceremony-Support is seen on October 16, 2023 within the Crown Heights neighborhood of the Brooklyn borough of New York Metropolis.
Michael M. Santiago/Getty Photographs
Ceremony Support had first filed for Chapter 11 bankruptcy in October 2023, permitting it to scale back billions in debt and shut a whole bunch of underperforming shops. Alongside declining gross sales, the corporate has additionally confronted greater than 1,000 federal, state, and native lawsuits alleging its pharmacies improperly stuffed prescriptions for painkillers, in keeping with the New York Times.
In March 2023, the U.S. Division of Justice filed a complaint accusing Ceremony Support of filling “illegal prescriptions for managed substances” that confirmed a number of crimson flags for misuse — allegations the corporate has denied.
As a part of its first chapter reorganization, Ceremony Support reached a settlement with the Justice Division in June 2024 resolving these allegations below the False Claims Act and Managed Substances Act. Underneath the settlement, the corporate agreed to pay the federal government $7.5 million and have a normal unsecured declare in Ceremony Support’s chapter case, that are being dealt with by way of the court docket course of. Ceremony Support did not admit to any wrongdoing.
The corporate’s second chapter submitting in Could 2025 paused many of the remaining opioid-related lawsuits together with instances introduced by state and native governments in addition to particular person plaintiffs which are actually being dealt with by way of the chapter’s claims course of whereas Ceremony Support works by way of its wind-down plan — a plan that is still below court docket assessment amid ongoing objections from the U.S. Trustee.
Ceremony Support has denied the allegations in these lawsuits and in an announcement in 2023 mentioned it sought an “equitable” decision of opioid claims by way of the Chapter 11 course of.
Based in 1962 as Thrift D Low cost Middle in Scranton, Pennsylvania, Ceremony Support grew into the nation’s third-largest standalone pharmacy chain earlier than its closing closure.
