Rite Aid’s “Comeback Story” cuts Pharmacy Chain Files For for Ackruptcy again
After closing hundreds of stores and facing ongoing challenges, Rite Aid looks for buyers as he prepares to sell the remaining inventory and essential assets.
Scripps News
It was a rough stretch for a large pharmacy chain.
CVS, Walgreens and Rite Aid are all in the midst of a major closure, and Rite Aid recently filed for bankruptcy for the second time over the years.
However, while the massive closures have extended beyond the retail pharmacy sector, other companies such as Forever 21, Joann, Macy’s, Denny’s and Bahama Breeze have announced that they will be closing this year.
This is the latest from pharmacy chains CVS, Walgreens and Rite Aid, including the number of stores each company plans to close.
How many ceremonial aid stores are closed?
Rite Aid has announced that it has filed for Chapter 11 bankruptcy again on May 5, the second time since October 2023. The bankruptcy filing has identified the locations of 316 stores where Rite Aid was tapped to close.
On May 15, Rite Aid said it had “concluded a series of sales agreements and a pharmacy service transition agreement.” This includes transferring pharmacy assets from US locations to pharmacies, Walgreens, Albertsons, Kroger, Giant Eagle and other operators. Rite Aid and Bartell Drugs Storts in some states will be operated by CVS Pharmacy as part of a sales agreement approved May 21 at the U.S. Bankruptcy Court in New Jersey on May 21, according to Rite Aid’s Bankruptcy Docket.
During the migration of prescription files, Rite Aid said the store remains open and that customers will still have access to pharmacy services, including prescription restocking and vaccinations. Before filing for bankruptcy, Rite Aid operated 1,240 stores in 15 states.
“A key priority for Rite Aid is to ensure that as many loyal customers as possible will continue to receive the necessary pharmacy services and care without interruption,” said Matt Schroeder, CEO of Rite Aid, in a statement. “These agreements will help pharmacy customers experience a smooth transition while still retaining employment for some of their valued team members.”
Rite Aid has buyers for customer files in 810 stores, but no buyers for files were found in 200 other locations. The deadline for entering bids for Rite Aid’s pharmacy assets (May 13) has passed, but the deadline for entering bids for the remaining assets of the chain, including Thrifty Ice Cream Business, is June 13, with an auction date set for June 20th.
How many Walgreens stores are closed?
In October 2024, the Walgreens Boots Alliance announced plans to close around 1,200 stores across the US as pharmacy chains struggle to break down consumer spending.
At the time, the chain said that closures would occur within three years, and will be closed as about 500 stores will close in August in 2025.
The move is part of a multi-year cost-saving program under CEO Tim Wentworth, who took on the job in 2023. In a statement in October 2024, Wentworth reiterated the company’s commitment to focusing on improving its core business. Retail pharmacy.
“This turnaround will take time, but I’m sure it will provide great financial and consumer benefits in the long run,” Wentworth said in a statement.
The company closed 70 stores in the first quarter of 2025 and ended on November 30, 2024, Wentworth said in a January 2025 analyst conference call. Walgreens was scheduled to close around 450 stores by the end of 2025.
In March 2025, Walgreens went private to Sycamore Partners for $10 billion, shutting down the open market deal for the US pharmacy giant for almost a century. Sycamore Partners, a private equity company specializing in retail and consumer investment, has a track record of acquiring retailers that have won distressed retailers, according to Reuters.
How many CVS stores are closed?
CVS first announced plans to close stores in November 2021 as part of its efforts to “optimize existing stores and pharmacies.”
The chain aims to close 900 stores between 2022 and 2024, and another 270 in 2025.
A spokesperson said in an emailed statement that the company is closing “strategically to better meet consumer health, health and pharmacy care needs” as it is not responding to “industrial pressures.”
Additionally, even though certain locations are closed, Thibault said CVS is opening stores and pharmacies in “needed areas.” The company plans to open 100 stores between 2022 and 2024, and to open nearly 30 locations in 2025, including locations within Target Store.
Contributors: Eric Lagatta, Jonathan Limehouse, Mary Wallas Holdridge, James Powell, Mike Snyder, USA Today
Gabe Hauari is a national trending news reporter for USA Today. You can follow him with X @geuna Alternatively, email him at gdhauari@gannett.com.
