It's yet another round of Chapter 11 proceedings
This Major Drugstore Chain Filed for Bankruptcy … Again. Here’s What You Need to Know
Published on May 07, 2025
Bankruptcy filings seem like a dime a dozen in 2025, with so many high-profile retailers going the Chapter 11 route. You can look to Joann and Forever 21 as just two examples of this year’s company carnage. But not all bankruptcy filings necessarily mean stores will close. The Container Store filed for Chapter 11 bankruptcy in December 2024, which allowed them to remain open while “financially reorganizing.” For the record, they exited Chapter 11 in January 2025 and, for all intents and purposes, are considered back on track.
But now a national drugstore chain is in the throes of bankruptcy filing—its second dance with Chapter 11 in just two years. While there are things you should avoid buying at drugstores, there are plenty items that are must-buys at a pharmacy, and a closure like this could be a huge inconvenience in our daily lives. So is this actually the end for this chain? Maybe … but maybe not.
Read on to find out which drugstore is in trouble and what it means for how you stock up on your everyday essentials.
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Which major drugstore chain filed for bankruptcy?
Rite Aid began Chapter 11 bankruptcy proceedings on May 5, 2025. The company reports that they’re speaking with several potential buyers who are interested in purchasing it, but nothing is set in stone. Essentially, by filing Chapter 11 (done voluntarily), they’re hoping the legal action will actually make the company’s sale to someone else easier and more efficient.
Rite Aid is hardly the only drugstore chain in financial turmoil. Walgreens, for example, reported $30.13B in debt in February 2025. However, Rite Aid shoppers on Reddit started remarking on the store’s empty shelves as recently as March 2025, raising questions about the health of the company.
“I ran into the ‘big’ Rite-Aid near me today to grab a birthday card and some candy to supplement a birthday present and half the shelves were empty,” said one Redditor. “A few weeks ago I picked up some prescriptions at the ‘small’ Rite-Aid I usually go to and it was the same, possibly even less stocked.”
The thread was met with similar stories from other disappointed Rite Aid shoppers who said their local stores had either closed or nearly empty.
Wait—didn’t Rite Aid just come out of bankruptcy?
Yes, Rite Aid exited Chapter 11 in September 2024, after initially filing back in October 2023. Those proceedings were intended to help the retailer eliminate $2 billion in debt, which included closing around 500 stores.
At the time, then-CEO Jeffrey S. Stein said the company was taking those actions to move forward as a stronger company. “With the support of our lenders, we look forward to strengthening our financial foundation, advancing our transformation initiatives and accelerating the execution of our turnaround strategy,” Stein said in a statement. “In doing so, we will be even better able to deliver the health-care products and services our customers and their families rely on—now and into the future.”
And it seemed to work. When Rite Aid exited Chapter 11 last year, they did so with roughly $2.5 billion in exit financing to support them going forward. But here we are again.
Why is Rite Aid filing for bankruptcy again?
At least publicly, Rite Aid is saying they are voluntarily filing for bankruptcy again in order to effectively be sold to new proprietors.
“For more than 60 years, Rite Aid has been a proud provider of pharmacy services and products to our loyal customers,” said current CEO Matt Schroeder in a statement. “While we have continued to face financial challenges, intensified by the rapidly evolving retail and health-care 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.”
Will Rite Aid close its stores this time around?
Whether or not Rite Aid will close all stores remains to be seen. According to the company, customers can still access pharmacy services and products both in-store and online at RiteAid.com. That includes both prescriptions and immunizations. However, in practically the same breath, a press release says they are working on a “smooth transfer” of customer prescriptions to other pharmacies. With that in mind, it doesn’t look like the Rite Aid we know will exist in the same way for much longer—or at all—so you might want to start looking for other drugstore options, from CVS to Costco.
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Sources:
- Business Wire: “The Container Store to Execute Comprehensive Recapitalization Transaction with Lender Support to Best Position the Company for Future Success”
- Business Wire: “The Container Store Successfully Completes Financial Restructuring”
- Rite Aid Newsroom: “Rite Aid Is Pursuing a Strategic and Value-Maximizing Sale Process”
- Companies Market Cap: “Walgreens Boots Alliance – Total debt”
- Reddit: “Rite-Aid stores with empty shelves/possible closure?”
- Rite Aid Newsroom: “Rite Aid Takes Steps to Accelerate Transformation and Position Company for Long-Term Success”
- Rite Aid Newsroom: “Rite Aid Completes Restructuring Process and Emerges from Chapter 11”
