Indiana grocery chain Marsh Supermarkets will close all of its in-store pharmacies, the latest move by a retailer that observers say appears to be on the verge of collapse.
The grocer announced Friday morning that it would be closing all of its pharmacies – 37 locations among its 64 remaining supermarkets – on May 3, the Indianapolis Business Journal reported.
Marsh reportedly has sold its customer prescription accounts to Woonsocket, R.I.-based CVS, which last year took over the pharmacy operations for Target. The value of the deal was not disclosed.
A Marsh spokesperson did not reply to PG’s request for comment.
The pharmacy closings are the latest in a series of events suggesting a downward spiral for the embattled Indianapolis-based grocery chain.
Marsh has been closing an increasing number of store locations that at last count would ultimately leave the grocer with 54 supermarkets in Indiana and Ohio, down from the 120 locations it had in 2006 when the chain was acquired by Florida-based Sun Capital Partners. Marsh has blamed the closings on underperformance in a highly competitive market that includes Kroger, Meijer, Walmart and others.
In addition, the company is reportedly in arrears on hundreds of thousands of dollars in rent, taxes and fees for services. Marsh also is being sued by Winston-Salem, N.C.-based Krispy Kreme Doughnut Corp., which claims the grocer owes it more than $100,000 for unpaid shipments of doughnuts, IBJ reported.