Rite Aid Files for Bankruptcy for Second Time, Plans to Sell 1,240 Stores with $1.94 Billion Financing

Rite Aid Corp. has filed for Chapter 11 bankruptcy protection for the second time in less than two years, as announced on May 5, 2025. The company, which operates 1,240 stores across 15 states, including 178 in New York, 60 in New Jersey, and 347 in California, is planning to sell its assets, including customer prescription files, inventory, and store locations, as part of its restructuring efforts. The drugstore chain has secured $1.94 billion in new financing from existing lenders to keep its stores operational during the bankruptcy proceedings. Rite Aid CEO Matt Schroeder cited financial challenges intensified by the rapidly evolving retail and healthcare landscapes as reasons for the filing. Rite Aid intends to keep its stores open for the next few months, allowing customers to continue accessing pharmacy services and products, including prescriptions and immunizations. The company is working on transferring customer prescriptions to other pharmacies to ensure a smooth transition. The company has already closed some locations and anticipates more closures in the coming months.