Rite Aid stores across the country could soon be closing down as the company reportedly considers filing for its second bankruptcy in two years.
The troubled drugstore chain previously filed for Chapter 11 bankruptcy in 2023, which resulted in more than 800 store closures. Rite Aid still operates more than 1,200 stores in the U.S.
Chapter 11 bankruptcy is a form of bankruptcy under the US Bankruptcy Code that allows a debtor, typically a business or individual, to reorganize their finances and debts, rather than liquidate their assets.
According to Bloomberg, Rite Aid Corp. is now running low on cash and preparing once again to sell itself as a second bankruptcy looms. The company intends to sell individual stores and close the rest, sources told the outlet.
The Independent has reached out to Rite Aid Corp. for confirmation and comment on the reports.
Bloomberg reported in March that Rite Aid entered into talks with its creditors to access cash, following concerns over its liquidity. At that time the company agreed to meet certain financial and operational targets in addition to closing some locations.
In September 2024 Rite Aid announced that it was exiting its first bankruptcy, after closing hundreds of stores – cutting around $2 billion.
The company had been taken over by creditors and received about $2.5 billion in exit financing to support future operations, according to Bloomberg.
Local reports of closures have been ongoing for the past two years across the country, with stores shutting their doors in California, New York, New Jersey, Pennsylvania, New Hampshire, Oregon, Washington, among others.
It comes after two other major national drugstores – Walgreens and CVS – have also come under financial pressure.
Walgreens also reportedly plans to close some 1,200 stores in the next three years and in March was acquired by private equity firm Sycamore Partners in a deal worth $23.7 billion.
CVS has said it plans to close 270 more stores in 2025, as part of a stream-lining process at the company, aiming to optimize its business model and address changing consumer needs.
