Rite Aid Going Bust Again?

Rite Aid says it plans to keep its 1,350 stores in 15 states open, but this may be the end for the 63 year old chain: despite filing for bankruptcy again.

https://www.upi.com/Top_News/US/2025/05/05/Rite-Aid-bankruptcy-again/2311746482815/

Rite Aid files for bankruptcy for second time in 18 months
By Allen Cone - May 5, 2025

May 5 (UPI) -- Rite Aid on Monday announced it is filing for bankruptcy and looking for a new buyer, just seven months after exiting Chapter 11.

Eighteen months ago, Rite Aid first filed for bankruptcy in October 2023 because it couldn't compete against bigger chains and paid millions for filling unlawful opioid prescriptions. The company plans to keep open its 1,350 stores in 15 states with 4,000 employees.

"For more than 60 years, Rite Aid has been a proud provider of pharmacy services and products to our loyal customers," Matt Schroeder, Rite Aid's CEO, said a statement. "While we have continued to face financial challenges, intensified by the rapidly evolving retail and healthcare landscapes in which we operate, we are encouraged by meaningful interest from a number of potential national and regional strategic acquirers.

"As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible."

Rite Aid secured $1.9 billion in new financing, along with cash from operations, and is expected to provide sufficient funding during the sale and court-supervised process," according to a Rite Aid release.

The company intends to divest or monetize any assets not sold through the court-supervised process.

During the first Chapter 11 process, the company slashed $2 billion in debt, secured $2.5 billion in funds to keep operating and closed about 500 locations.

Rite Aid, which is headquartered in Philadelphia, had revenue of $24.06 billion in 2023 but a $750 million net loss, according to its filing.

Rite Aid is the third-largest nationwide standalone pharmacy chain in the United States far behind CVS's 9,118 and Walgreens with 8,363. CVS also has 1,865 retail pharmacies within retail chains and approximately 80 clinics in Target stores.

When counting big box chains, such as Walmart, it is the seventh-largest pharmacy in the United States. Also Amazon is now selling prescription drugs.

In 2015, Walgreens offered $17 billion to acquire the company, but U.S. regulators were fearful the combination would violate federal antitrust laws and reduce competition in the market.

In 2017, the companies agreed to a $4.4 billion deal in which Walgreens acquired 1,932 of the 4,000 Rite Aid locations.

Rite Aid's peak in 2008 was 5,059 stores. Rite Aid opened its first store in 1962 in Scranton, Pa., and now is mainly in New York, California and Pennsylvania.

Walgreens announced in March that it was going private in a deal valued up to $24 billion. The transaction is expected to be finalized later this year.

CVS has closed more than 1,000 stores and undergone thousands of layoffs.

Rite Aid has begun selling off its "pharmacy assets".  In some cases entire stores, in others prescription and customer files:

https://www.reuters.com/business/healthcare-pharmaceuticals/cvs-bids-rite-aid-stores-bloomberg-news-reports-2025-05-15/

Rite Aid to sell 1,000 pharmacy assets to CVS, Walgreens and others
By Sabrina Valle - May 15, 2025

May 15 (Reuters) - Bankrupt U.S. pharmacy chain Rite Aid on Thursday said it agreed to sell pharmacy assets from more than 1,000 store locations in separate transactions to CVS Pharmacy, Walgreens, Albertsons, Kroger and Giant Eagle, among others.

CVS Pharmacy will buy and operate many Rite Aid and Bartell Drugs stores in Washington, Oregon and Idaho, Rite Aid said in a filing.

Rite Aid stores will remain open, and customers can continue to use pharmacy services, including prescription refills and immunizations, without interruption, it said.

The sale includes prescription files and other goods, a person familiar with the agreements said.

Walgreens declined to comment. The other bidders did not immediately respond to requests for comment.

Earlier this month, Rite Aid filed for bankruptcy for the second time in less than two years, after poor performance in its retail business made it difficult for the company to maintain sufficient cash flow and restock its retail inventory.

The company has received court approval to pursue a rapid-fire sale of its pharmacy business. Rite Aid is scheduled to conduct a hearing to approve the sales on May 21. The sales will remain subject to regulatory notices and approvals.

The Pennsylvania-based company entered bankruptcy with over $2 billion in debt and has warned employees about likely job cuts. Rite Aid Chief Executive Matt Schroeder said on Thursday the company would try to preserve jobs during the transition.

"These agreements ensure our pharmacy customers will experience a smooth transition while preserving jobs for some of our valued team members," Schroeder said in a note.

Bloomberg had previously reported on CVS' bid.

Rite Aid had about 1,350 pharmacies, so the fate of the remaining 350 pharmacies is yet to be explained.

And they're gone for good:

https://www.cbsnews.com/news/rite-aid-closing-all-locations-after-decades-in-business/

Rite Aid closing all locations after decades in business
October 4, 2025 / 9:34 PM EDT / CBS News

Rite Aid is closing all locations, according to a recent post on the U.S. pharmacy chain's website.

"All Rite Aid stores have now closed. We thank our loyal customers for their many years of support," read a post at the bottom of the Rite Aid website.

CBS News reached out to Rite Aid for comment on Saturday.

Rite Aid filed for bankruptcy in May, the second such filing in nearly two years. The company also filed for bankruptcy in October 2023 and said at the time that the restructuring would "significantly reduce the company's debt" while helping to "resolve litigation claims in an equitable manner." Rite Aid said it planned to close down 154 stores after the filing.

The company obtained $3.45 billion in fresh financing as it carried out a restructuring plan and dealt with dips in sales and opioid-related lawsuits.

More than 520 Rite Aid pharmacies have closed since October 2023, which is about a quarter of the 2,111 open at the time of the bankruptcy filing.

The Justice Department filed a complaint against Rite Aid in March 2023, accusing the company of violating the False Claims Act and the Controlled Substances Act by filling unlawful prescriptions for drugs such as oxycodone, fentanyl and benzodiazepine and ignoring internal red flags about the prescriptions, CBS News reported.

The website for the company founded in 1962 now only shows a service to help former customers find a new pharmacy and a link to request pharmacy records.