Thrifty Ice Cream locations are closing nationwide as Rite Aid winds down its assets amid bankruptcy proceedings.
As reported by The Street, the 500 hand-scooped ice cream counters inside Rite Aid stores across the country will shutter by default as a result of the pharmacy chain filing for Chapter 11 protections in early May.
Newsweek has contacted Thrifty Ice Cream for more details on the closures.
Why It Matters
While Thrifty Ice Cream remains available for purchase at stand-alone stores and counters in other retailers across the country, the move marks a significant hit for the ice cream brand.
Rite Aid Corporation
What To Know
The Los Angeles-based ice cream brand, which launched in 1940, can be found at thousands of retailers and stand-alone locations across the U.S.
In 1996, Rite Aid acquired the brand, and the circular scoop ice cream has since become a staple at its West Coast pharmacies.
Now facing its second bankruptcy in as many years, Rite Aid plans to close hundreds of its roughly 1,200 locations. In addition to selling its stores to pay down debts, Rite Aid is set to auction off its intellectual property and assets, which includes its Thrifty Ice Cream businesses and the factory in El Monte, California.
As a result, a buyer could purchase Thrifty and continue distributing the ice cream to grocery chains and at ice cream counters. In 2018, the brand was almost sold along with Rite Aid to food and drug retailer Albertsons, but the deal was abandoned.
According to Reuters, Rite Aid’s previous Chapter 11 filing in October 2023 allowed the company to eliminate $2 billion in debt, close hundreds of stores and reach settlements with both lenders and plaintiffs in various lawsuits.
What People Are Saying
Evan Lovett, the host of L.A. in a Minute, said in a video posted on X, formerly Twitter: “If history is any guide, Thrifty Ice Cream is going to be scooping up smiles for years to come, just maybe not at your local Rite Aid.”
Rite Aid CEO Matt Schroeder said in a statement earlier this month: “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.”
What Happens Next
According to court documents, Rite Aid is soliciting offers for its assets, and potential buyers are required to submit indications of interest for assets such as Thrifty by Friday. Sale hearings are set to take place in late June.
