Rite Aid has filed for Chapter 11 bankruptcy for the second time in under two years, citing continued financial difficulties and an increasingly competitive healthcare and retail environment, FOX Business reports.
The drugstore chain announced the move on Monday, stating it will pursue a “strategic and value-maximizing sale process” for most of its assets.
The latest filing comes after Rite Aid first entered bankruptcy protection in October 2023. While the previous restructuring reduced the company’s debt and brought it under the control of its lenders, it did not resolve long-standing challenges such as inflation, shifting consumer behavior, and stiff competition from major pharmacy chains including CVS, Walgreens, Walmart, and Amazon.
“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,” CEO Matt Schroeder said in a statement.
Since its emergence from its previous bankruptcy, Rite Aid’s store count has shrunk significantly — from approximately 2,000 locations in 2023 to about 1,240 today. Store closures have been particularly concentrated in states like Ohio and Michigan.
Despite the bankruptcy proceedings, the company emphasized that it will maintain pharmacy services both in-store and online, assuring customers that prescription and immunization services will continue without disruption. Employees are also expected to continue receiving pay and benefits as the company works through the process, which includes transitioning customer prescriptions to other pharmacy providers.
Founded over 60 years ago, Rite Aid has long been a familiar name in American retail pharmacy. However, recent years have seen the company struggle to keep pace with larger rivals and adapt to industry shifts, including the growth of digital healthcare and pharmacy delivery services.
The latest news in your social feeds
Subscribe to our social media platforms to stay tuned