Major drugstore chain files bankruptcy again after closing 800 stores
The American drugstore chain Rite-Aid has filed for bankruptcy for the second time in two years and is set to cut more jobs.
Rite-Aid on Monday stated that it is trying to sell all of its assets and that stores will stay open during the Chapter 11 proceedings.
The pharmacy chain filed for bankruptcy in October 2023, when it had more than 2,300 locations in 17 US states.
It then shuttered over 800 stores, but managed to get out of bankruptcy as a private company in September 2024.
Upon emerging, Rite-Aid stated that it had ‘a rightsized store footprint, more efficient operating model, significantly less debt and additional financial resources’.
Rite-Aid was the third-biggest drugstore chain in the US before its bankruptcy two years ago.
In March, a Rite-Aid spokeswoman said it was ‘laser focused’ on restocking its locations and its retail pharmacy operations. But some stories including one a few miles from the corporate headquarters in Philadelphia had empty shelves this month.
Rite-Aid has 1,245 stores remaining in 15 states, according to its website.
The company’s CEO, Matt Schroeder, said that there is ‘meaningful interest from potential buyers.
‘For more than 60 years, Rite Aid has been a proud provider of pharmacy services and products to our loyal customers,’ stated Schroeder.
‘As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible.’
Employees working to transfer existing customers’ prescriptions to other pharmacies will keep receiving wages and benefits.
Rite-Aid was founded in 1962 in Scranton, Pennsylvania, and became a public company in 1968.
Its bankruptcy comes more than six months after another major US pharmacy chain, Walgreens, announced that it would be closing 1,200 of its stores because they were not profitable. The Chicago-based company at the time had 8,700 stores across the country.
American pharmacy chains have struggled to survive with increased theft and many have locked their products behind cases. They have also been hit with competition from online retailers.
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