Rite Aid Files for Second Bankruptcy as Financial Struggles Persist
Rite Aid has filed for bankruptcy for the second time, just seven months after emerging from its previous Chapter 11 proceedings. The struggling pharmacy chain made the announcement on Monday, stating that the new filing is part of an ongoing effort to attract a buyer and restructure its operations.
Despite the bankruptcy, Rite Aid confirmed that its stores will remain open and operational. The company has also secured nearly $2 billion in financing to sustain its day-to-day activities throughout the process.
CEO Matt Schroeder said the decision reflects the company’s continued financial pressures and shifting dynamics within both the retail and healthcare sectors. “We’ve seen interest from several potential national and regional buyers,” Schroeder noted, adding that Rite Aid’s focus remains on maintaining pharmacy services and preserving jobs.
Rite Aid initially filed for bankruptcy in October 2023, burdened by nearly $4 billion in debt and mounting legal costs related to alleged improper opioid prescriptions. It exited bankruptcy in September 2024 after closing roughly 500 stores, cutting $2 billion in debt, and securing fresh funding to stay afloat.
Currently operating around 1,250 stores – nearly half its size two years ago — Rite Aid remains the third-largest standalone pharmacy chain in the U.S., though it lags far behind competitors like CVS and Walgreens.
Industry analysts say the second bankruptcy isn’t surprising. Neil Saunders of GlobalData pointed out that the company has struggled to stock shelves and resolve core operational issues. “The first bankruptcy didn’t fix the deeper problems,” he said. “It’s more likely that competitors will now acquire select locations rather than take over the entire chain.”
Rite Aid’s challenges echo wider troubles in the pharmacy sector. Walgreens recently agreed to go private in a $24 billion deal, and CVS has shuttered more than 1,000 stores while testing a pharmacy-only model amid layoffs and declining prescription reimbursements.
As traditional drugstores grapple with competition from digital retailers and changes in consumer behavior, Rite Aid’s future remains uncertain – but its latest bankruptcy signals a continued reshaping of the U.S. pharmacy landscape.
