Drug Fair
Encyclopedia
Drug Fair was the name a chain of drugstore
s based in New Jersey
. The company kept its headquarters in Somerset, New Jersey
and was founded in 1954. In addition to its drugstore chain Drug Fair also owned and operated Cost Cutters, a discount drug and general merchandise chain which sold many of the same items and often did business in the same areas as Drug Fair stores. Like its competitor CVS had in the previous decade, in the 2000s Drug Fair introduced a discount card called "We Care," which was the company's slogan. The card was good at any Drug Fair or Cost Cutters store as both store's logos were printed on the cards.
In 2005 Drug Fair was acquired by Sun Capital Partners, a private equity firm that owns stakes in several nationwide chain businesses.
Drug Fair underwent a rapid expansion beginning in the mid-1990s, and by mid-2008 Drug Fair operated 50 locations. Cost Cutters, which hadn't expanded as aggressively and had seen several locations close, comprised another eleven locations. While initially popular and continuing to have a fairly loyal customer base, competition from other chains such as CVS, Walgreens
, and Rite Aid
eventually began to erode business from these stores.
Signs that the chain was in trouble emerged in March 2009, when two Drug Fair locations in Raritan and Rockaway, New Jersey closed abruptly. Soon thereafter reports began surfacing that Drug Fair had fallen behind on their rent payments, as well as on payments to their suppliers which resulted in store inventory dropping.
Shortly after the two stores closed Drug Fair announced it was filing for Chapter 11 bankruptcy protection. Just prior to the filing Drug Fair announced it was selling a majority of its 50 drugstores to Walgreens, who also purchased prescription lists from several other Drug Fair locations. Upon the purchase Drug Fair closed four of its locations (in Bridgewater, North Arlington, and East Rutherford, New Jersey and one of the store's two locations in Clifton, New Jersey) within days. Shortly thereafter Drug Fair announced the planned closure of ten more stores and nine of its eleven Cost Cutters locations, with liquidation sales to begin immediately. By May 2009, the stores that weren't remaining in the chain were closed. Many of those stores are still vacant, but some were bought up by other chain stores (including Dollar General
, who purchased the North Arlington store and one of the two Clifton stores as well as a never-opened Drug Fair in Saddle Brook, New Jersey as part of its expansion into the northern New Jersey market).
As for the stores that Walgreens elected to keep open, they continued to do business as Drug Fair while awaiting conversion to Walgreens. On May 16, 2009, the sale was finalized and Drug Fair's corporate headquarters was closed. On that date the Drug Fair stores still in the chain became Walgreens and Drug Fair ceased to exist. Drug Fair was the third of three Sun Capital Partners businesses to liquidate and close in the span of twelve months; Wickes Furniture
was the first and Mervyns
was the second.
Pharmacy
Pharmacy is the health profession that links the health sciences with the chemical sciences and it is charged with ensuring the safe and effective use of pharmaceutical drugs...
s based in New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
. The company kept its headquarters in Somerset, New Jersey
Somerset, New Jersey
Somerset is a census-designated place and unincorporated area located at the easternmost section within Franklin Township, in Somerset County, New Jersey. At the 2000 United States Census, the CDP population was 23,040...
and was founded in 1954. In addition to its drugstore chain Drug Fair also owned and operated Cost Cutters, a discount drug and general merchandise chain which sold many of the same items and often did business in the same areas as Drug Fair stores. Like its competitor CVS had in the previous decade, in the 2000s Drug Fair introduced a discount card called "We Care," which was the company's slogan. The card was good at any Drug Fair or Cost Cutters store as both store's logos were printed on the cards.
In 2005 Drug Fair was acquired by Sun Capital Partners, a private equity firm that owns stakes in several nationwide chain businesses.
Drug Fair underwent a rapid expansion beginning in the mid-1990s, and by mid-2008 Drug Fair operated 50 locations. Cost Cutters, which hadn't expanded as aggressively and had seen several locations close, comprised another eleven locations. While initially popular and continuing to have a fairly loyal customer base, competition from other chains such as CVS, Walgreens
Walgreens
Walgreen Co. , doing business as Walgreens , is the largest drugstore chain in the United States of America. As of August 31st, the company operates 8,210 locations across all 50 states, the District of Columbia and Puerto Rico. Founded in Chicago, Illinois in 1901, and has since expanded...
, and Rite Aid
Rite Aid
Rite Aid is a drugstore chain in the United States and a Fortune 500 company headquartered in East Pennsboro Township, Pennsylvania, near Camp Hill. Rite Aid is the largest drugstore chain on the East Coast and the third largest drugstore chain in the U.S....
eventually began to erode business from these stores.
Signs that the chain was in trouble emerged in March 2009, when two Drug Fair locations in Raritan and Rockaway, New Jersey closed abruptly. Soon thereafter reports began surfacing that Drug Fair had fallen behind on their rent payments, as well as on payments to their suppliers which resulted in store inventory dropping.
Shortly after the two stores closed Drug Fair announced it was filing for Chapter 11 bankruptcy protection. Just prior to the filing Drug Fair announced it was selling a majority of its 50 drugstores to Walgreens, who also purchased prescription lists from several other Drug Fair locations. Upon the purchase Drug Fair closed four of its locations (in Bridgewater, North Arlington, and East Rutherford, New Jersey and one of the store's two locations in Clifton, New Jersey) within days. Shortly thereafter Drug Fair announced the planned closure of ten more stores and nine of its eleven Cost Cutters locations, with liquidation sales to begin immediately. By May 2009, the stores that weren't remaining in the chain were closed. Many of those stores are still vacant, but some were bought up by other chain stores (including Dollar General
Dollar General
Dollar General Corp. is a U.S. chain of variety stores headquartered in Goodlettsville, Tennessee. As of January 2011, Dollar General operated over 9,300 stores in 35 U.S. states....
, who purchased the North Arlington store and one of the two Clifton stores as well as a never-opened Drug Fair in Saddle Brook, New Jersey as part of its expansion into the northern New Jersey market).
As for the stores that Walgreens elected to keep open, they continued to do business as Drug Fair while awaiting conversion to Walgreens. On May 16, 2009, the sale was finalized and Drug Fair's corporate headquarters was closed. On that date the Drug Fair stores still in the chain became Walgreens and Drug Fair ceased to exist. Drug Fair was the third of three Sun Capital Partners businesses to liquidate and close in the span of twelve months; Wickes Furniture
Wickes Furniture
Wickes Furniture, owned by Sun Capital Partners, was a privately held chain of furniture stores based in Wheeling, Illinois. The company was founded in 1971 with a showroom in Fridley, Minnesota, and at its peak operated 43 stores in California, Illinois, Indiana, Nevada, and Oregon.The company,...
was the first and Mervyns
Mervyns
Mervyns was an American middle scale department store chain based in Hayward, California. It carried national brands of clothing, footwear, bedding, furniture, jewelry, beauty products, electronics, and housewares. Many of the company's stores were in shopping malls...
was the second.