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Daily Mail
03-07-2025
- Business
- Daily Mail
Rite Aid reaches bleak milestone as US pharmacy access worsens
Rite Aid has closed 1,000 stores after filing for bankruptcy for the second time in two years. The grim milestone was revealed in court papers as part of the pharmacy giant's Chapter 11 bankruptcy filing in May. The pharmacy giant is undergoing a complete winding down of its 1,200 physical stores. Rite Aid has suffered years of financial trials, and has been unable to adapt to a tougher retail environment since the global Covid-19 pandemic. The saga resulted in the company filing for bankruptcy for a second time in May, with CEO Matt Schroeder (pictured) blaming 'financial challenges' exacerbated by 'rapidly evolving retail and healthcare landscapes.' Since then stores are being notified of their closure dates in brutal communication rounds. The latest update on June 27 announced the closure of 123 locations across eight states including California, Pennsylvania and New York. That brought the total closures in June up to 600, and brought the overall figure to 1,070, Newsweek reported. The rest of Rite Aid's locations will close or be sold-off within the year, leaving thousands of Americans in so-called 'pharmacy deserts' — communities that do not have sufficient access to drugstores. More than 48 million Americans now lack access to a nearby drugstore, research from healthcare company GoodRx found. The figure has increased markedly from 41.2 million in 2021, according to the research. Rite Aid rivals CVS and Walgreens have also suffered financial pressures in recent years and have been forced to shutter stores. CVS has gone through a series of strategic store closures, including 270 closures this year. Walgreens is also reportedly considering a $10 billion deal to sell itself to private equity firm Sycamore Partners. Online competitors — like upstarts Capsule, Blink Health, and even Amazon — have been eating at the brick-and-mortar giants because of their delivery methods and convenience. For years, Rite Aid racked up billions of dollars of debt, forcing executives to declare its first bankruptcy in September 2023. On top of Rite Aid's financial woes, it faced a series of lawsuits after being accused of overprescribing opioids.
Daily Mail
03-07-2025
- Business
- Daily Mail
Rite Aid hits bleak milestone as America's pharmacy desert grows
Rite Aid has closed 1,000 stores after filing for bankruptcy for the second time in two years. The grim milestone was revealed in court papers as part of the pharmacy giant's Chapter 11 bankruptcy filing in May. The pharmacy giant is undergoing a complete winding down of its 1,200 physical stores. Rite Aid has suffered years of financial trials, and has been unable to adapt to a tougher retail environment since the global Covid-19 pandemic. The saga resulted in the company filing for bankruptcy for a second time in May, with CEO Matt Schroeder blaming 'financial challenges' exacerbated by 'rapidly evolving retail and healthcare landscapes.' Since then stores are being notified of their closure dates in brutal communication rounds. The latest update on June 27 announced the closure of 123 locations across eight states including California, Pennsylvania and New York. That brought the total closures in June up to 600, and brought the overall figure to 1,070, Newsweek reported. The rest of Rite Aid's locations will close or be sold-off within the year, leaving thousands of Americans in so-called 'pharmacy deserts' — communities that do not have sufficient access to drugstores. More than 48 million Americans now lack access to a nearby drugstore, research from healthcare company GoodRx found. The figure has increased markedly from 41.2 million in 2021, according to the research. Rite Aid rivals CVS and Walgreens have also suffered financial pressures in recent years and have been forced to shutter stores. CVS has gone through a series of strategic store closures, including 270 closures this year. Walgreens is also reportedly considering a $10 billion deal to sell itself to private equity firm Sycamore Partners. Online competitors — like upstarts Capsule, Blink Health, and even Amazon — have been eating at the brick-and-mortar giants because of their delivery methods and convenience. For years, Rite Aid racked up billions of dollars of debt, forcing executives to declare its first bankruptcy in September 2023. Rite Aid has now closed more than 1,000 stores On top of Rite Aid's financial woes, it faced a series of lawsuits after being accused of overprescribing opioids. After eliminating $2 billion in debt in its first restructuring in 2023, the company failed to regain financial stability during its latest round of business. Last month Rite Aid was also given court approval to sell off its Thrifty Ice Cream brand for $19.2 million. Founded in 1940, the brand launched as a drug store in downtown Los Angeles that allowed customers to sample ice cream. The ice cream gained a cult status by the 1970s and garnered 'significant celebrity shoutouts.'
Newsweek
01-07-2025
- Business
- Newsweek
Rite Aid Closures Reach 1,000 as America Faces 'Pharmacy Deserts'
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Rite Aid continues to shutter stores across the country as the company pursues a complete wind-down of its nationwide footprint after filing for bankruptcy for the second time in two years. According to court filings, the pharmacy chain has already marked more than 1,000 locations for closure since it filed for Chapter 11 protection in early May. Why It Matters Rite Aid's decision to shutter or sell-off all of its 1,200 stores – sparked by long-term financial difficulties and a challenging retail environment – comes as other pharmacy chains including CVS and Walgreens scale down their nationwide footprint. The hundreds of stores that are still set to close within the year will limit many Americans' access to health screenings and prescription medications, resulting in what experts are calling "pharmacy deserts" – less-connected communities being left without a sufficient number of nearby drugstores. What To Know In early May, Rite Aid announced plans to file for Chapter 11 proceedings, a move that will result in all of its stores either closing for good or being sold to new owners. CEO Matt Schroeder said the decision was prompted by "financial challenges," exacerbated by "rapidly evolving retail and healthcare landscapes." Since then, the company has issued several rounds of closure notices. In its latest update on June 27, Rite Aid said it would shut another 123 locations across eight states, with California, Pennsylvania and New York the hardest hit. The announcement brought the total for June to nearly 600 and pushed the overall number of closures to 1,070. A Rite Aid store in Pittsburgh, Pennsylvania, Wednesday, June 25, 2025. A Rite Aid store in Pittsburgh, Pennsylvania, Wednesday, June 25, 2025. Gene J. Puskar/AP Photo The difficulties faced by Rite Aid are not unique, however. Other pharmacies including CVS and Walgreens are also reducing their nationwide store presence, which both companies have framed as a means of improving company-wide efficiencies. This sector-wide trend threatens to decrease access to medication for many Americans, raising concerns about the growing phenomenon of so-called pharmacy deserts. Research published in March, prior to the beginning of the Rite Aid closures, from U.S. healthcare company GoodRx found that over 48.4 million Americans – or one in seven – now lack easy access to a drugstore. That marks an increase from 41.2 million in 2021, with the firm saying that 45 percent of U.S. counties could now be classified as pharmacy deserts, meaning large sections of the population are forced to travel significant distances to access essential medications. What People Are Saying Rite Aid CEO Matt Schroeder, upon announcing that the company had commenced Chapter 11 proceedings, said: "For more than 60 years, Rite Aid has been a proud provider of pharmacy services and products to our loyal customers. 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." Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, previously told Newsweek: "For some major retailers, 2025 is becoming a year of consolidation. Retail locations that have struggled in recent years to remain profitable due to rising costs and less demand are being shuttered, as companies focus their efforts on more successful stores. The hope is these closures will ultimately produce more fiscal and operational efficiency, but it will come at the cost of customers who favored these locations having fewer options." What Happens Next? Many of Rite Aid's locations and prescription files have already been sold to competitors such as CVS. Last week, Rite Aid secured court approval to sell its Thrifty Ice Cream brand to a Monster Beverage-linked company for $19.2 million. With pharmacy closures set to continue throughout 2025, the likelihood is growing that more Americans will find themselves struggling to access essential medication.
San Francisco Chronicle
23-06-2025
- Business
- San Francisco Chronicle
Thrifty ice cream faces uncertain future as Rite Aid closes 500 stores
Thrifty ice cream, a beloved West Coast brand for nearly a century, will shutter 500 of its in-store counters as Rite Aid moves forward with restructuring under bankruptcy protection. The closures are part of the pharmacy chain's broader efforts to cut costs and sell off assets after filing for Chapter 11 this month. Since acquiring Thrifty Drug Stores in 1996, Rite Aid has served the brand's signature cylindrical, flat-topped scoops at counters in many of its 1,200 stores. Rite Aid plans to close more than 20 stores in California and auction off its intellectual property, including the Thrifty ice cream brand and its longtime factory in El Monte (Los Angeles County), which has been in operation since 1976. The factory replaced Thrifty's original Hollywood plant, which opened the same year the brand debuted in 1940. While Thrifty counters will soon disappear, prepackaged Thrifty ice cream will continue to be sold at stand-alone locations and major retailers nationwide. But as Los Angeles Times columnist Jenn Harris playfully points out, 'It is a scientific fact that your ice cream cone will taste at least 38% better if it's eaten while perusing the As Seen on TV aisle of your local Rite Aid.' Known for offbeat flavors such as Chocolate Malted Krunch, bacon cheddar and a Chuck E. Cheese birthday cake collaboration, Thrifty remains a nostalgic favorite. The brand's future now hinges on Rite Aid's asset sale, with potential buyers required to submit offers by the end of June. '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,' Rite Aid CEO Matt Schroeder said in a recent statement.
Yahoo
07-06-2025
- Business
- Yahoo
Rite Aid Closing Over 100 Stores This June
Rite Aid will close the doors to over a hundred stores this month. As of early May, the pharmacy operated over 1,200 stores across the U.S., according to Newsweek. The company has filed for bankruptcy for the second time since October 2023, and continues to face obstacles in the "rapidly evolving retail and healthcare landscape," according to CEO Matt Schroeder. According to Penn Live, store closures will occur in Pennsylvania, California, New York, and nine other states. In total, 111 stores will shut down — that number is in addition to the 361 Rite Aid closures previously announced. Rite Aid has "entered into agreements" with companies like CVS Pharmacy, Walgreens, Albertsons, Kroger, and Giant Eagle to obtain its pharmacy assets. In May, Reuters reported that Rite Aid entered bankruptcy with over $2 billion in debt. Their earlier filing for bankruptcy in October 2023 came after they reported $750 million in losses. This most recent filing marks the fourth notice of store closings. According to Healthcare Finance News, Rite Aid blames its struggles on the "cost of more than 1,600 opioid lawsuits, a downturn in the economy, tariffs, and increased costs from suppliers." Rising operating costs and competition from online retailers have also factored into these closures. Rite Aid closure announcements come shortly after news that CVS will also be closing many stores in 2025. Over 270 CVS locations will shut down in 2025, according to Kiplinger, as "part of a multi-year restructuring effort and reflect a broader shift underway across the retail healthcare industry." In 2021, CVS Health announced that over 300 stores would close over three years. 'The company has been evaluating changes in population, consumer buying patterns and future health needs to ensure it has the right kinds of stores in the right locations for consumers and for the business."Rite Aid Closing Over 100 Stores This June first appeared on Men's Journal on Jun 4, 2025 Sign in to access your portfolio
