Rite Aid has filed for bankruptcy for the second time in under two years, announcing plans to close or sell all of its remaining stores as part of a court-supervised sales process. The Philadelphia-based pharmacy chain, which first filed for Chapter 11 in October 2023, continues to struggle amid mounting debt and an evolving healthcare and retail environment.
In court documents filed Monday in U.S. Bankruptcy Court in New Jersey, Rite Aid’s legal team stated the company will begin “store closing sales” while marketing its assets in an effort to find the “highest or best offer.” The plan affects hundreds of stores across Pennsylvania and New Jersey, including the company’s presence in the Philadelphia area, which has already seen a 40% reduction since 2022.
Despite the wind-down, Rite Aid says customers can still pick up prescriptions, receive vaccinations, and shop for everyday items at open stores. The company is also working to transfer prescriptions to other pharmacies as store closures proceed. 
CEO Matt Schroeder emphasized that while Rite Aid winds down operations, the company’s focus remains on continuing pharmacy services and supporting its employees. “We have played a critical role in supporting the healthcare needs of countless Americans,” Schroeder said. “As we move forward, our priorities are ensuring uninterrupted pharmacy services and preserving jobs for as many associates as possible.”
Rite Aid has secured $1.94 billion in new financing from lenders to assist with the bankruptcy and sale process. However, some corporate layoffs have already begun, including at the company’s Navy Yard headquarters.
