Rite Aid has filed for bankruptcy for the second time in less than two years.
The drug store chain announced Chapter 11 proceedings on Monday, stating in a press release that they are “pursuing a strategic and value-maximizing sale process for substantially all of its assets.”
“For more than 60 years, Rite Aid has been a proud provider of pharmacy services and products to our loyal customers,” Matt Schroeder, Chief Executive Officer of Rite Aid, said in a statement.
Rite Aid’s previous restructuring reduced the U.S. pharmacy chain’s debt but failed to address its long-term business challenges of inflationary pressures and increased competition by pharmacy chains Walgreens, CVS, Walmart and Amazon.
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“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,” Schroeder said.
Following changes after the October 2023 Chapter 11 protection filing, Rite Aid still had $2.5 billion in debt when it emerged from bankruptcy as a private company owned by its lenders in 2024.
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The drugstore chain enters its second bankruptcy with a smaller retail footprint. It operated about 2,000 pharmacies in 2023 but now has only 1,240 stores across the United States with recent closures significantly reducing its presence in markets such as Ohio and Michigan.
The company said that “customers can continue to access pharmacy services and products in stores and online, including prescriptions and immunizations.”
Additionally, Rite Aid employees “will continue to receive pay and benefits” while transferring customer prescriptions to other pharmacies, the company said.
Reuters contributed to this report.
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