Rite Aid shuts its last 89 stores after May bankruptcy, ending 62 years of operation amid $4B debt, opioid lawsuits, and competition from CVS and Walgreens.
Rite Aid permanently shuts down after decades of operation
One of the once largest drugstore chains in the United States, Rite Aid, has permanently closed its last 89 stores after filing for bankruptcy in May. This is the second bankruptcy in less than two years.
“All Rite Aid stores are now closed. We thank our customers for their years of support,” the company said in a statement.
The chain’s website only has a function for obtaining pharmaceutical records and finding the nearest pharmacy to serve customers.
From legendary brand to debt hole
The company opened its first store in 1962, becoming recognizable thanks to Thrifty ice cream, which was later sold due to the debt crisis.
The first bankruptcy occurred in October 2023, when Rite Aid’s debt exceeded $4 billion due to lawsuits related to the illegal dispensing of opioids.
At that time, the company reduced debt by $2 billion, raised $2.5 billion to continue operations and closed about 500 stores.
However, competition from giants CVS and Walgreens and falling profitability forced Rite Aid to file for bankruptcy for the second time in May 2025.
The pharmacy business was taken away by competitors
During the latest restructuring, Rite Aid sold most of its pharmacy operations to CVS, Walgreens, Albertsons and Kroger, which together received more than 1,000 locations.
While this has partially preserved access to medications for customers, the ongoing decline in pharmacies in the United States threatens seniors, who now have to travel greater distances to get their medications.
The industry is experiencing a pharmacy chain crisis
The trend of chain reduction is not limited to Rite Aid.
- CVS announced back in 2021 that it would close 900 stores by 2024.
- Walgreens said in 2024 that 25% of its locations were unprofitable and plans to close 1,200 stores.
Related: First Brands Files for Bankruptcy, Revealing Billions in Debt
