Rite Aid refiles for bankruptcy 8 months after emerging from Chapter 11 filing

By Yi-Jin Yu

Drugstore chain Rite Aid is filing for bankruptcy again, eight months after emerging from a previous Chapter 11 filing in September 2024.

Rite Aid said in a May 5 announcement that it plans to keep its stores open while it tries to sell off assets so existing customers do not need to transfer prescription orders to other pharmacies.

Selcuk Acar/Anadolu via Getty Images

A view of a Rite Aid building in Queens, New York, September 10, 2024.

"During this process, Rite Aid customers can continue to access pharmacy services and products in stores and online, including prescriptions and immunizations," the company said in a news release. "In connection with the sale process and court-supervised proceedings, the Company is working to facilitate a smooth transfer of customer prescriptions to other pharmacies. Rite Aid employees assisting with this process will continue to receive pay and benefits."

Rite Aid, the third-largest standalone pharmacy chain in the U.S., was founded in 1962 as Thrif D Discount Center in Scranton, Pennsylvania. The chain now has over 1,200 stores in 15 states from California to Vermont.

Rite Aid says it has secured $1.94 billion in new financing from existing lenders to stay operational during bankruptcy proceedings.

Other retail pharmacies, such as CVS and Walgreens have also faced headwinds recently, closing stores amid growing competition from other retailers including online pharmacies, according to reporting from The Associated Press.