Major Drug Store Chain Files For Bankruptcy For The Second Time in Less Than Two Years | JP
Drug store chain Rite Aid has filed for bankruptcy for the second time in less than two years.
In a press release, Rite Aid announced it filed for Chapter 11 bankruptcy as a “strategic and value-maximizing sale process for substantially all of its assets.”
Matt Schroeder, Chief Executive Officer of Rite Aid, stated, “For more than 60 years, Rite Aid has been a proud provider of pharmacy services and products to our loyal customers.”
He added, “As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible.”
Rite Aid files for second bankruptcy in two years https://t.co/3oVv7CMUUM https://t.co/3oVv7CMUUM
— JP (@JP) May 6, 2025
Per Fox Business:
Rite Aid has filed for bankruptcy for the second time in less than two years.
The drug store chain announced Chapter 11 proceedings on Monday, stating in a press release that they are “pursuing a 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,” Matt Schroeder, Chief Executive Officer of Rite Aid, said in a statement.
Rite Aid’s previous restructuring reduced the U.S. pharmacy chain’s debt but failed to address its long-term business challenges of inflationary pressures and increased competition by pharmacy chains Walgreens, CVS, Walmart and Amazon.
“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. As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible,” Schroeder said.
Rite Aid is filing for bankruptcy again ands plans to sell off its stores. Remaining Bartell locations could face eventual closure. https://t.co/IsohVlDSWj
— The Seattle Times (@seattletimes) May 6, 2025
All Rite Aids in New York have already shut their doors.
Turns out the best way to stop shoplifters from stealing toothpaste in New York isn’t plastic barriers—it’s closing every Rite Aid in the state.
Congrats, Albany. Problem solved.https://t.co/4wf6ciyOD5
— Rob Ortt (@SenatorOrtt) May 6, 2025
Per WKBW:
Rite Aid, which filed for Chapter 11 bankruptcy Monday, is in the process of closing and selling locations across New York state, including dozens in Western New York.
In recent days, Rite Aid employees received separation notices from the company, informing them their employment could be terminated starting June 4th. However, a Rite Aid spokesperson tells 7 News the company is still in the process of selling its stores and assets and all locations will not necessarily close next month. The company says the sale process is fluid and some stores could be acquired by another company that would allow them to remain open.
In a separation letter to employees, CEO Matthew Schroeder said the decision is based on a rapidly changing healthcare and retail landscape, saying “the dramatic downturn in the economy, potential litigation, and increased costs (including tariffs) from our suppliers and landlords have necessitated employee separations that were unforeseen, as we were actively seeing funding and pursing several alternative strategic transactions with the hope that this action could be avoided or postponed.”
Rite Aid has 73 pharmacies across Western New York, including 13 in the City of Buffalo alone. The chain closed eight locations in the area last year.