Rite Aid Files for Second Bankruptcy, Leading to Store Closures
Rite Aid has filed for Chapter 11 bankruptcy for the second time in less than two years, citing ongoing financial challenges including substantial debt, legal liabilities related to the opioid crisis, and declining sales. The company plans to close at least 68 underperforming stores across various states as part of its restructuring efforts. Rite Aid has secured $1.94 billion in financing to support operations during the bankruptcy process and is in discussions with potential buyers for its assets. Despite the closures, the company aims to maintain pharmacy services and minimize disruptions for customers.
In the Pacific Northwest, CVS Health has expressed interest in acquiring a significant number of Rite Aid stores and patient prescription data, particularly in Washington, Oregon, and Idaho. Other companies, including Walgreens Boots Alliance, Albertsons, Kroger, and Giant Eagle, have also submitted bids. The court has approved a fast-tracked sale of Rite Aid's pharmacy assets, with bids due by May 13 and a final sale hearing scheduled for May 21. Rite Aid CEO Matthew Schroeder indicated that the company will not emerge from bankruptcy and will cease to exist once its assets are sold. The closures have also impacted Bartell Drugs, a Seattle-based pharmacy chain acquired by Rite Aid in 2020. Several Bartell locations, including those in Snoqualmie and North Bend, are scheduled to shut down, marking the end of a longstanding community institution.
Customers are advised that, starting June 5, 2025, Rite Aid will discontinue services such as rewards points, gift card usage, and product returns. However, the company will continue to offer limited services, including prescription management and immunizations, during the bankruptcy process
This development reflects broader challenges in the retail pharmacy sector, with other major chains like Walgreens and CVS also reducing their store counts in response to changing market dynamics.
