On Monday, May 5, Rite Aid filed for Chapter 11 bankruptcy proceedings for the second time in almost two years, and subsequently announced that they would be closing all 178 of the beleaguered pharmacy chain’s New York locations.
Rite Aid CEO Matthew Schroeder informed the soon-to-be former employees in New York via a letter sent on Monday that they would officially be closing all of their pharmacies in the state by June of this year, followed by the “strategic and value-maximizing sale process for substantially all of its assets.”
“For more than 60 years, Rite Aid has been a proud provider of pharmacy services and products to our loyal customers,” Schroeder’s letter stated. “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.”
Rite Aid had previously declared bankruptcy in October 2023. However, the attempt to restructure the company’s debt – which amounted to $750 million in losses in 2022 – was unsuccessful; when the chain emerged from bankruptcy in 2024, it still carried a whopping $2.5 billion in debt and never recovered.
Issues behind Rite Aid’s woes were cited as being due to inflation as well as competition from pharmacy chains Walgreens, CVS, as well as online retailers such as Walmart and Amazon. In addition, the company accrued additional debt from thousands of lawsuits alleging involvement in the opioid crisis.
“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,” Schroeder said. “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.”
In Monday’s bankruptcy filing, Rite Aid listed assets and liabilities between $1 billion and $10 billion, and – in addition to the New York stores – the company will be closing or selling the remainder of its 1,200 locations nationwide.
Rite Aid Rewards points will no longer be accepted for purchases as of May 6, and Rite Aid gift cards – as well as returns or exchanges – will no longer be accepted as of June 5.
