Rite Aid Bankruptcy Forces Nearly 1,100 Store Closures

Rite Aid, once the third-largest U.S. pharmacy chain, is closing nearly 1,100 stores nationwide after filing for Chapter 11 bankruptcy for the second time since 2023. The closures are hitting states like Pennsylvania and New Jersey particularly hard, with some areas, such as Erie County, losing all local Rite Aid locations. As shelves are emptied and staff are cut, many prescriptions and pharmacy assets are being transferred to competitors including CVS, Walgreens, and Giant Eagle, though customers may select other providers. The company’s financial challenges are driven by mounting debt, tighter vendor financing, increased competition from large retailers and online companies, and changes in consumer habits. The closures have also put related businesses, such as Thrifty Ice Cream, at risk, prompting local officials to seek alternative pharmacy services for affected communities. Rite Aid’s ongoing restructuring has not secured the financing needed for long-term survival, casting doubt on the future viability of the company.