Less than a year after emerging from bankruptcy, Rite Aid filed for Chapter 11 of the U.S. Bankruptcy Code once again, following ongoing financial challenges. The company’s plan is to sell itself in order to stay afloat. If you’re a customer of these pharmacies, here’s what you need to know about what will happen to their locations.
Why did Rite Aid file for bankruptcy?
Since 2023, the company had been facing economic difficulties, although it initially managed to exit bankruptcy through a Chapter 11 filing. However, the pharmacy chain struggled to fully recover and continued to face major obstacles.
One of the key issues arose when the U.S. Department of Justice filed a lawsuit against Rite Aid for violating the False Claims Act and the Controlled Substances Act, due to dispensing prescriptions without a legitimate medical purpose. This led the company to reach a multimillion-dollar settlement.
Additionally, in 2024, Rite Aid suffered a major data breach that exposed the personal information of 2.2 million customers. This security incident prompted a class action lawsuit, ultimately forcing the company to pay $6.8 million in compensation.
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Will Rite Aid pharmacies close?
According to a statement released by the company, Rite Aid stores will remain open and operational throughout the bankruptcy process. CEO Matt Schroeder stated that the company is working to transfer customer prescriptions to other pharmacies; employees will also continue to receive their wages and benefits.
For now, Rite Aid plans to sell the company and has already received significant interest from potential buyers. It is expected that the sale, along with the $1.94 billion it secured from lenders, will help the company recover.
How many Rite Aid pharmacies are there in the United States?
Until 2008, the chain had more than 5,000 pharmacies in the country; however, by 2023, this number had decreased to 2,000, and after its bankruptcy filing that same year, it currently operates around 1,300.
History of Rite Aid
The pharmacy chain was founded in 1962 in Scranton, Pennsylvania, under the name Thrif D Discount Center. In 1968, its name was officially changed to Rite Aid Corporation, and one year later, it became the third-largest retail pharmacy chain in the United States.
By 1996, the company expanded to the West Coast and the Gulf Coast region through the acquisitions of Thrifty PayLess Holdings, Inc., Harco, Inc., and K & B Inc., adding more than 1,000 stores. In 2014, it acquired Health Dialog, which offers personalized health advice and disease management services through phone and live online health services.
In 2015, it expanded its portfolio with the acquisition of EnvisionRx (now Elixir), a full-service pharmacy benefit management (PBM) company. The company continued expanding its presence with the acquisition of Bartell Drugs in Washington, where it opened 67 stores in 2020.
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During the COVID-19 pandemic in 2021, the company began administering global vaccines at all of its locations. Later, Rite Aid moved its headquarters from Camp Hill to the Navy Yard district of Philadelphia and, in 2024, completed the sale of its Elixir Solutions business to MedImpact Healthcare Systems, Inc.
What is Rite Aid Rewards?
Rite Aid Rewards is a point-based loyalty program that allows customers to earn points with eligible purchases in physical stores, online, and through the mobile app. Customers can also earn points for picking up prescriptions, getting vaccines, and more. They can redeem their points for BonusCash to get a discount on a future purchase.
