Rite Aid Files Second Bankruptcy, Plans Nationwide Store Closures, 1,000+ Layoffs

Rite Aid has filed for Chapter 11 bankruptcy for the second time since 2023, planning to close or sell all remaining stores and distribution centers. The company owes over $381 million to creditors, including $49 million to the U.S. Department of Justice related to opioid prescription violations. As part of the restructuring, Rite Aid will close its distribution center in Harford County, Maryland, resulting in over 300 layoffs, and plans mass layoffs of more than 1,000 employees at its corporate headquarters in Pennsylvania. Starting June, Rite Aid will no longer accept returns, exchanges, or gift cards, though it will maintain pharmacy services and assist customers in transferring prescriptions. The company is seeking to sell substantially all its assets supported by nearly $2 billion in new financing commitments through a voluntary Chapter 11 process. State labor departments are coordinating rapid response efforts to assist affected employees amid the widespread closures and layoffs.