According to Rite Aid, all 2,100 of its U.S. stores have now definitively closed. This shocking decision arrives as the company teeters through its second bankruptcy declaration within only eight months. The pharmacy chain initially filed for Chapter 11 bankruptcy protection in October 2023, which allowed it to restructure its debts and close underperforming locations. The firm was eventually crushed by perpetual insolvency. As a consequence, it declared bankruptcy in May 2025, forcing all of its operations to shut down permanently.
Rite Aid was originally established in 1962 as Thrift D Discount Center in Scranton, Pennsylvania. Since then, it has expanded to become the nation’s third-largest standalone pharmacy chain. The wave of bankruptcy filings has been made worse by years of continuing legal battles. The U.S. Department of Justice filed a complaint in March 2023, accusing Rite Aid of filling “unlawful prescriptions for controlled substances” that raised multiple red flags for misuse. Rite Aid has publicly rejected and rebutted these assertions. Now, it’s been hit with more than 1,000 federal, state and local lawsuits, alleging its pharmacies inappropriately filled prescriptions for painkillers.
Rite Aid will pay the federal government $7.5 million as part of its continuing bankruptcy proceedings. It has a shortfall or other deficiency, as well as a general unsecured claim, in its bankruptcy case. The second bankruptcy filing also halted nearly all opioid-related civil litigation against the company. This step will enable state and local governments as well as individual plaintiffs to continue pursuing their claims through the bankruptcy claims process.
Along with CVS and Walgreens, in June 2024 Rite Aid settled with the Justice Department for $10.8 billion dollars. This settlement resolved claims under both the False Claims Act and the Controlled Substances Act. Even with these efforts, Rite Aid’s financial footing continued to be tenuous. The company managed to secure $1.94 billion in new financing from existing lenders to maintain operations during its bankruptcy proceedings.
Rite Aid’s eventual demise marks the overall pharmacy industry as being at an inflection point. This event marks an end of an era for a company that used to be an integral part of the healthcare for our communities. In a statement on its website, Rite Aid expressed gratitude toward its customers:
“All Rite Aid stores have now closed. We thank our loyal customers for their many years of support.” – Rite Aid (via its website)
The company’s wind-down plan is still pending court review, encountering opposition from the U.S. Trustee. Stakeholders await the outcome as Rite Aid navigates this complex legal landscape while reflecting on its legacy as a major player in the pharmacy industry.
