On May 9, the American chain drugstore Rite Aid submitted a document to the bankruptcy court in the New Jersey region of the United States, announcing the closure of an additional 68 stores located in 7 states. The company had already initiated bankruptcy proceedings in the New Jersey court on May 5, obtaining $1.94 billion in new financing to support store operations during the asset sale and bankruptcy processes.
In 2023, Rite Aid first filed for bankruptcy with over two thousand stores at that time. Currently, they operate 1,240 stores in 15 states across the United States. Rite Aid assured customers that they can still access services and products both in-store and online, including prescription drugs and vaccine administration. During the supervision and sale process by the court, Rite Aid will make efforts to ensure the transfer of customers’ prescriptions to other pharmacies.
As of May 6, eligible consumers will no longer receive Rite Aid reward points, and all accumulated points and cash rewards based on standard terms will expire. Effective June 5, Rite Aid gift cards will not be accepted, and no returns or exchanges will be processed.
In recent years, the three major chain drugstores in the United States – CVS, Walgreens, and Rite Aid, have all faced financial difficulties, leading to the closure of hundreds of stores. The challenges stem from shrinking profits on prescription drugs, increased theft cases, lawsuits or settlements related to opioid prescription disputes, and customers shifting towards online shopping and discount retailers. Rite Aid’s bankruptcy filing this month outlined debts amounting to several billion dollars.
According to the bankruptcy application, Rite Aid is currently seeking buyers for all or some of its stores and is planning to commence a “store closing clearance sale” for stores that cannot be sold, eventually shutting down those locations.
These financial struggles faced by Rite Aid reflect broader challenges in the retail pharmacy industry as it adapts to changing consumer preferences and market dynamics. The impact of the closures on employees and customers remains a matter of concern as the company navigates through these restructuring efforts.