Why are Rite Aid stores closing? Inside the challenges facing the pharmacy giant

American drugstore chain Rite Aid filed for Chapter 11 bankruptcy in May 2025. In a recent statement, the company announced that some or all of its stores will be shut down in the upcoming days.

Rite Aid is based in Philadelphia, Pennsylvania, and was founded in 1962. It was initially known as "Thrift D Discount Center". This is not the first time the drugstore has faced bankruptcy. In 2023, the company had to file, but it was previously considered the third biggest drugstore chain in the country.

Matt Schroeder, the CEO of Rite Aid, stated in a press release. He said:

"For more than 60 years, Rite Aid has been a proud provider of pharmacy services and products to our loyal customers. 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 acquirors."

He also added:

"To support Rite Aid during its sale process, which it intends to conduct under section 363 of the U.S. Bankruptcy code, the company has secured commitments from certain of its existing lenders to access $1.94 billion in new financing... This financing, along with cash from operations, is expected to provide sufficient funding during the sale and court-supervised process," Rite Aid's CEO conlcuded.

More details on Rite Aid's challenges

For those who are wondering if all Rite Aid stores are going to be shut down across the US, the company is currently seeking buyers willing to purchase either a part or all of the stores across the country. This means the drugstore chain could potentially close.

The reason behind Rite Aid's bankruptcy is due to:

"...intensified by the rapidly evolving retail and healthcare landscapes," shared Matt Schroeder.

The CEO of the drugstore company also expressed his heartfelt thanks to all who have worked with him in the past. He said:

"As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible."

He continued:

"I will be forever grateful to our thousands of associates for their commitment to Rite Aid and its mission, and I thank our entire team – from store associates to corporate employees – for their dedication to our customers and our company. With their support, we have played a critical role in supporting the healthcare needs of countless Americans across the communities that we are honored to serve."

Rite Aid also has pharmacies under the same name, and people are wondering if the Rite Aid pharmacies are closing too. If the stores are closing, then the pharmacies will follow suit. However, in the press release, the company has stated that customers:

"...can continue to access pharmacy services and products in stores and online, including prescriptions and immunizations... In connection with the sale process and court-supervised proceedings, the company is working to facilitate a smooth transfer of customer prescriptions to other pharmacies... Rite Aid employees assisting with this process will continue to receive pay and benefits."

Rite Aid has filed for bankruptcy again and may be closing some or all of its stores soon. The drugstore company says it will continue to offer pharmacy services for now and will work to make sure customers and employees are supported. However, the future of the drugstore chain is still uncertain.

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