Struggling Pharmacy Chain Files for Bankruptcy Amid Financial Woes
A pharmacy chain facing severe financial difficulties has filed for bankruptcy, reporting over $1.5 million in assets but more than $12.2 million in liabilities.
On August 29, CL Cressler Inc., which operates seven Medicine Shoppe Pharmacy locations in New York and Pennsylvania, filed for Chapter 11 bankruptcy in an effort to reorganize its debts.
In its filing, the Camp Hill, Pennsylvania-based company disclosed a significant financial imbalance, with liabilities vastly outweighing its assets. The company confirmed that unsecured creditors would have access to available funds.
Major Creditors and Declining Revenue
The pharmacy chain’s largest creditors include:
- Commercial Finance Group ($6 million)
- Carol and Clyde Cressler ($3.7 million)
- Cardinal Distribution (over $1.2 million)
CL Cressler’s financial troubles are underscored by a sharp decline in revenue. The company reported gross revenue of $50.8 million in 2023, a steep drop from $61.5 million the previous year.
Pharmacy Locations and Bankruptcy Impact
Operating under Care Capital Management, CL Cressler owns and manages Medicine Shoppe Pharmacy locations in Binghamton, New York, as well as Lancaster, Newport, and Mechanicsburg, Pennsylvania. The company also oversees long-term care pharmacy operations in Binghamton, Camp Hill, and Pittsburgh.
The Chapter 11 filing applies specifically to these seven Medicine Shoppe locations. However, Medicine Shoppe International, a subsidiary of Cardinal Health with approximately 500 locations across 43 states, remains unaffected and has not filed for bankruptcy.
While CL Cressler has not publicly disclosed the full details behind the bankruptcy, the filing highlights the financial strain on independent and regional pharmacies in an evolving healthcare landscape.
