By Lydia Kane, Senior Correspondent
Rite Aid has announced plans to close more than 360 stores across the United States as part of its restructuring under Chapter 11 bankruptcy filed in May 2025. This move represents nearly a third of its remaining 1,240 locations and marks the company’s second bankruptcy filing in two years.
A Second Bankruptcy and Widespread Closures
The Philadelphia-based pharmacy chain filed for Chapter 11 bankruptcy on May 5, 2025, citing mounting financial pressures, including declining prescription reimbursements, increased competition, and legal liabilities related to opioid lawsuits. The company had previously filed for bankruptcy in October 2023 and emerged in June 2024, only to face continued financial challenges that led to the current filing.
Since the May filing, Rite Aid has initiated multiple waves of store closures, beginning with 47 locations on May 5, followed by additional closures on May 9, May 16, and May 23. The closures are part of a broader strategy to sell or shut down all remaining stores, with prescription files being transferred to competitors such as CVS, Walgreens, Kroger, and Albertsons.
Impact on Customers and Employees
Customers have been advised to return items by June 4 and to use any remaining gift cards or coupons by June 6. After these dates, returns and the use of gift cards or coupons will no longer be accepted. Additionally, Rite Aid Rewards points are no longer being issued, and existing points and BonusCash will expire per the terms and conditions.
The closures have also led to significant layoffs, with the company filing WARN notices in several states. In New York alone, 68 stores are set to close, impacting 745 employees. Rite Aid has stated that it is working to facilitate a smooth transition for both customers and employees during this period.
The Decline of a Retail Giant
Rite Aid was once among the largest pharmacy chains in the United States, operating over 4,500 stores at its peak in the early 2000s. However, a combination of factors, including shifting consumer behaviors, reduced reimbursement rates, legal liabilities from opioid lawsuits, and increased competition, have contributed to its decline.
The company’s financial struggles have been exacerbated by the broader challenges facing the retail pharmacy industry. Walgreens and CVS have also announced hundreds of store closures in 2025, reflecting a significant shift in the sector. Retail experts forecast the closure of 45,000 physical stores across the U.S. within the next five years, affecting numerous sectors.
The Future of Thrifty Ice Cream
The closures have also impacted Thrifty Ice Cream, a cherished brand on the West Coast since 1940 and owned by Rite Aid. As part of its cost-cutting measures, Rite Aid will close 500 in-store Thrifty ice cream counters. Additionally, the company plans to auction off significant assets, including the Thrifty brand and its long-operating factory in El Monte, Los Angeles County.
While the iconic scooping counters will disappear, prepackaged Thrifty ice cream will still be available at independent locations and retailers nationwide. The brand’s fate now relies on potential buyers placing bids by the end of June.
Broader Implications for the Retail Pharmacy Industry
The challenges faced by Rite Aid are indicative of broader trends in the retail pharmacy industry. Major chains like CVS and Walgreens are also undergoing significant restructuring, with CVS reducing locations since 2022 and Walgreens planning to close approximately 1,200 stores in 2025.
These closures reflect the industry’s need to adapt to changing consumer preferences and embrace technological advancements to remain competitive. Companies are increasingly focusing on enhancing their digital presence and streamlining operations to meet the evolving needs of customers.
Conclusion
Rite Aid’s decision to close over 360 stores amid its second bankruptcy filing in two years marks a significant moment in the retail pharmacy landscape. As the company works to restructure and sell its remaining assets, customers and employees are navigating the challenges posed by these widespread closures. The situation underscores the broader shifts occurring in the industry as companies adapt to new economic realities and consumer behaviors.