Rochester Drug Cooperative is shutting down its plant and cutting 98 jobs, according to a filing with the New York Department of Labor.
The Rochester, N.Y.-based drug distribution company cited "economic" reasons as the cause for the plant closure in the Feb. 13 filing.
Last month, the company said it would stop distributing opioids due to rising legal and compliance costs. Last April, the company agreed to pay $20 million to settle a case accusing it of unlawfully distributing controlled substances.
The plant will close May 13. Twenty-nine employees will be cut May 13, and the remaining 69 will be cut between May 13 and May 27, the company said in the filing.
"RDC has been under significant financial stress. We are undertaking all reasonable efforts to continue operations and are working diligently to preserve employment opportunities for as many individuals as possible. However, as required by law, we have notified employees that we may have to close the Rochester location, the Fairfield, N.J. or both. Clearly, we do not want to do that. And, we are doing everything possible to keep operating," Jeff Eller, a Rochester Drug Cooperative spokesperson told Becker's Hospital Review.