Rite Aid has entered bankruptcy protection for the second time in less than a year, after briefly emerging as a private company in late 2024. The struggling pharmacy chain is now actively seeking a buyer, with interest already expressed from several national and regional companies. If no purchaser steps forward, Rite Aid plans to close all remaining locations.
Currently operating about 1,240 stores—down from 2,000 just one year ago—the company has secured nearly $2 billion in financing to maintain operations during this process. For now, seniors can continue filling prescriptions and shopping both in-store and online. The company is working to ensure smooth transfers of prescriptions should stores close.
However, job reductions are expected, particularly at corporate headquarters, as the company grapples with ongoing financial difficulties and an inability to secure additional funding from lenders.
This second bankruptcy follows persistent challenges including substantial debt, fierce competition from larger pharmacy chains and online retailers, declining profit margins, and costly opioid-related legal settlements. Though Rite Aid’s first bankruptcy reduced its debt by $2 billion and closed hundreds of locations, it failed to address fundamental business problems, leaving the company still owing $2.5 billion when it exited Chapter 11 in 2024.
The potential closure of more Rite Aid pharmacies would continue a concerning trend that has created “pharmacy deserts” in some communities, particularly affecting seniors who rely on neighborhood drugstores for medications and healthcare products.