Rite Aid’s ‘comeback story’ cut short as pharmacy chain files for bankruptcy again
After closing hundreds of stores and facing ongoing challenges, Rite Aid looks for a buyer while preparing to sell its remaining inventory and essential assets.
Scripps News
It has been a rough stretch for large pharmacy chains.
CVS, Walgreens and Rite Aid are all in the midst of mass closures, and Rite Aid recently filed for bankruptcy for the second time in as many years.
Mass closures extend beyond the retail pharmacy space, however, as other companies such as Forever 21, Joann, Macy’s, Denny’s, Bahama Breeze and more have announced locations would shutter this year.
Here’s the latest on pharmacy chains CVS, Walgreens and Rite Aid, including how many stores each company is planning to close.
How many Rite Aid stores are closing?
Rite Aid announced it had filed for Chapter 11 bankruptcy again on May 5, the second time since October 2023. Bankruptcy filings have identified 316 store locations Rite Aid has tapped for closure.
On May 15, Rite Aid said it “successfully entered into a series of sale agreements and pharmacy services transition agreements,” which would include transitioning pharmacy assets from locations across the U.S. to CVS Pharmacy, Walgreens, Albertsons, Kroger, Giant Eagle and other operators. Rite Aid and Bartell Drugs stores in some states will also be operated by CVS Pharmacy as part of the sale agreements, which were approved on May 21 in the U.S. Bankruptcy Court of New Jersey, according to Rite Aid’s bankruptcy docket.
During the transition of prescription files, Rite Aid said its stores will remain open and customers can continue to access their pharmacy services, including prescription refills and immunizations. Before the bankruptcy filing, Rite Aid operated 1,240 stores across 15 states.
“A key priority for Rite Aid is to ensure that as many of our loyal customers as possible continue to receive the pharmacy services and care they require without interruption,” Matt Schroeder, CEO of Rite Aid, said in a statement. “These agreements ensure our pharmacy customers will experience a smooth transition while preserving jobs for some of our valued team members.”
Rite Aid has buyers for customer files at 810 of its stores, but did not find a buyer for files at 200 other locations, according to Reuters. While the deadline to enter bids for Rite Aid’s pharmacy assets (May 13) has passed, the deadline to enter bids for the chain’s remaining assets, including the Thrifty Ice Cream business, is June 13, with an auction date set for June 20.
How many Walgreens stores are closing?
Walgreens Boots Alliance announced in October 2024 its plans to close approximately 1,200 stores across the United States as the pharmacy chain struggles with slumping consumer spending.
At the time, the chain said the closures would occur within three years, starting with about 500 stores being shuttered in fiscal year 2025, which ends in August.
The move is part of a multi-year cost-cutting program under CEO Tim Wentworth, who took on the job in 2023. In a statement in October 2024, Wentworth reiterated the company’s commitment to focusing on improving its core business: retail pharmacy.
“This turnaround will take time, but we are confident it will yield significant financial and consumer benefits over the long term,” Wentworth said in the statement.
“We continue to execute our previously announced turnaround plan aimed at stabilizing retail pharmacy, including our footprint optimization program controlling operating costs, improving cash flow and continuing to address reimbursement models,” Walgreens said in an emailed statement to USA TODAY on May 30. “We are on track for our three-year store closures plan.”
The company closed 70 stores in its first quarter of fiscal 2025, which ended Nov. 30, 2024, Wentworth said in a January 2025 analyst conference call. Walgreens planned to close about another 450 stores through the end of 2025 he said.
In March 2025, Walgreens entered an agreement to be taken private by Sycamore Partners for $10 billion, closing out nearly a century of trading on public markets for the U.S. pharmacy giant. Sycamore Partners, a private equity firm that specializes in retail and consumer investments, has a track record of acquiring distressed retailers for profit: among them were brands such as Staples, Talbots and Nine West, according to Reuters.
The deal is not yet final, but Walgreens said in a news release in March it is expected to close in the fourth quarter of 2025.
How many CVS stores are closing?
CVS first announced in November 2021 its plan to close stores as part of an effort to “optimize our existing stores and pharmacies.”
The chain closed 900 stores between 2022 and 2024 and aims to close an additional 270 stores in 2025, company spokesperson Amy Thibault confirmed to USA TODAY on May 29.
The spokesperson said in an emailed statement that the company is closing locations “strategically to better meet consumers’ health, wellness and pharmacy care needs” and not in reaction to “industry pressures.”
Additionally, even while it closes certain locations, Thibault said CVS is also opening stores and pharmacies in “areas where there’s a need.” The company has opened 100 stores between 2022 and 2024, and has plans to open nearly 30 locations, including locations inside Target stores, in 2025.
This story has been updated to add new information.
Contributing: Eric Lagatta, Jonathan Limehouse, Mary Walrath-Holdridge, James Powel and Mike Snider, USA TODAY
Gabe Hauari is a national trending news reporter at USA TODAY. You can follow him on X @GabeHauari or email him at Gdhauari@gannett.com.
