Rite Aid bankruptcy update: report says pharmacy chain may be facing insolvency as more locations close

Struggling pharmacy chain Rite Aid may be preparing to file for a second bankruptcy and sell itself in pieces, according to a new report. The plans would come just a year after Rite Aid emerged from its prior bankruptcy proceedings. Here’s what you need to know.

What’s happened?

A report from Bloomberg yesterday said that the pharmacy chain Rite Aid was preparing to file for a second bankruptcy. Rite Aid previously filed for Chapter 11 bankruptcy in 2023, from which it emerged last year in 2024.

But now Bloomberg’s report suggests that Rite Aid’s reorganization in that bankruptcy wasn’t enough to help the retailer put its struggles behind it.

Rite Aid is reportedly “running low on cash” reserves, according to Bloomberg, and heading towards another bankruptcy. This time, the pharmacy chain will reportedly “sell itself in pieces” as part of the bankruptcy proceedings.

Bloomberg said Rite Aid is strapped for liquidity and will pursue a debtor-in-possession (DIP) loan to keep itself funded during the bankruptcy process. The publication cited “people with knowledge of the situation” as the source of the bankruptcy news.

Fast Company has reached out to Rite Aid for comment on the report. We also asked whether more store closures are planned and whether the pharmacy has any guidance for customers who get their medication at Rite Aid. We will update this story if we hear back.

As part of its second bankruptcy, Rite Aid will reportedly sell certain locations to bidders, while others will be closed permanently.

Rite Aid store closures in 2025

As part of its first bankruptcy two years ago, Rite Aid closed hundreds of stores in order to help restructure its business and get its finances in order. That bankruptcy was fueled by numerous financial woes, including declining revenue, more competition, and the costs associated with fighting opioid lawsuits. 

But emerging from the previous Chapter 11 now appears not to have done enough to help the company’s financial footing. Bloomberg says that like many retailers, including Joann and Party City, Rite Aid has still struggled with customers who are cutting back on their spending as well as higher interest rates.

As of now, Rite Aid has not publicly confirmed its second bankruptcy plans or announced any swath of store closures.

However, over the past several weeks, a number of local media outlets have reported on individual Rite Aid store closings in their area. 

For example, the Asbury Park Press on Tuesday reported that the Rite Aid at South Main Street in Neptune Township, New Jersey, would be closing effective today, April 23. A Rite Aid representative confirmed the closure to the outlet, stating, “While we have had to make difficult business decisions over the past several months to improve our business and optimize our retail footprint, we are committed to becoming financially and operationally healthy.”

Similarly, the Santa Monica Daily Press reported on April 17 that the Rite Aid at 14th and Wilshire in Santa Monica, California, would be closing in May. A sign posted to the door of that Rite Aid store said, “Thank you for trusting us with your health. On May 29th we will be moving your prescription to CVS on 1411 Lincoln Blvd.”

A day earlier, on April 16, the Central Oregon Daily News reported that Rite Aid would be closing its south-side store in Bend, Oregon. The outlet said Rite Aid employees confirmed the store would be closed and its inventory merged with Bend’s only other Rite Aid on the north side of the city. The closure was reported to be “part of a company-wide consolidation effort.”

How many Rite Aid stores are left in 2025?

According to Rite Aid’s store location listings, the pharmacy chain has 1,247 Rite Aids left in the United States.

Those stores span 15 states: California, Connecticut, Delaware, Idaho, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Ohio, Oregon, Pennsylvania, Vermont, Virginia, and Washington. 

However, as of this writing, the three stores reported to be closing above are still listed, and there is no indication in online listings that the stores have been marked for closure.

What that means is that Rite Aid will soon have less than its currently listed 1,247 in the United States. Just how many Rite Aids will remain if the reports of its second bankruptcy plans are accurate remains to be seen.

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