Rite Aid, a well-known pharmacy chain in the US, has filed for bankruptcy for the second time. The company first filed for Chapter 11 bankruptcy protection in October 2023 when it had a massive $8.6 billion debt. Although it cut that debt by $2 billion and closed 800 stores, the efforts were not enough to keep the business stable.
In May 2025, Rite Aid filed for bankruptcy again, showing the company is still struggling with debt, industry challenges, and changing customer habits.
Why Rite Aid Filed for Bankruptcy Again
The company has been facing ongoing problems in the retail healthcare industry. It has also been involved in legal cases related to the opioid crisis in the US. On top of that, changes in how people spend money and growing competition from other major pharmacies like CVS and Walgreens have made things worse for Rite Aid.
Even though it has secured $1.94 billion in funding to keep its stores running for now, Rite Aid is trying to find ways to recover, possibly by finding a buyer.
Customer Care and Prescription Transfers
Rite Aid says it wants to avoid disruptions in customer care. The company plans to transfer prescriptions to other pharmacies if needed, but it hopes many customers will continue using its services.
Rite Aid fills over 100 million prescriptions every year. If its stores shut down without a proper plan, it could cause a major backup in other pharmacies. They will need to legally receive prescriptions, add them to their systems, have enough medicines, and staff to handle the extra work. This is not an easy process.
Store Closures and Sale Plans
Rite Aid is in talks with potential buyers and has already announced that 68 underperforming stores will shut down permanently. Court documents say that these locations had very little value left.
Currently, Rite Aid has around 1,200 stores across 15 states in the US. The company said it will try to keep employees on the payroll during the bankruptcy process and retain staff wherever possible.
What Industry Experts Are Saying
Business expert Joe Camberato from National Business Capital believes that this second bankruptcy might actually bring some good changes to the pharmacy industry.
He pointed out that Walgreens is using automated systems to fill prescriptions—something Rite Aid had not adopted yet. Camberato said that this situation might push the whole industry to improve customer service, streamline operations, and treat pharmacy workers better.
Meanwhile, other big pharmacy chains are also struggling. Walgreens is closing several stores, and CVS has warned that over one million people in 16 states may soon lose coverage, possibly leading to what experts call “pharmacy deserts.”
Rite Aid’s second bankruptcy shows just how tough the retail pharmacy market has become. Legal troubles, competition, and customer habits are changing fast. Still, the company is trying to move forward by closing weak stores, keeping customers’ care in mind, and looking for buyers. While this news may sound worrying, some experts feel this shake-up might lead to better services and a stronger industry overall. For now, Rite Aid is keeping operations running and trying to ensure that customers and employees are not left in the lurch.