The well-known American pharmacy chain Rite Aid is facing serious financial challenges and has now announced the closure of 68 more stores. This move comes after years of difficulties in a fast-changing retail and healthcare market. As the company tries to stay afloat, customers and employees are left wondering what’s next.
Here’s everything you need to know about the closures, what the CEO has said, and how this will affect customers.
Rite Aid Struggles to Stay Afloat
Rite Aid, which has been serving customers for over 60 years, is now under bankruptcy protection for the second time, as of May 5, 2025. The company currently operates 1,240 stores across 15 US states.
In a recent statement, CEO Matt Schroeder shared that Rite Aid’s top priorities are to continue offering uninterrupted pharmacy services and to protect as many jobs as possible.
He also acknowledged that the company is going through a tough time due to the rising costs and changing demands in the retail and healthcare sectors. Still, he remained hopeful, mentioning that some national and regional buyers are showing interest in acquiring the business.
Store Closures Across the US
The 68 new store closures will impact seven states, with Pennsylvania and Oregon being the hardest hit. In fact, 44 of the closures are in Pennsylvania alone. All stores in this latest list are scheduled to shut down by May 12.
This is not the end of the story. According to reports, all 178 Rite Aid stores in New York are also set to close. This includes 18 stores on Long Island.
The company’s problems go beyond financial issues. Rite Aid is also facing tenancy problems, especially in areas like Long Island, where it has failed to pay rent on some properties.
Landlords Speak Out
Real estate owners who rent out space to Rite Aid have also expressed concerns. Steve Kaufman, who previously owned two Rite Aid spots, said the company had become unresponsive and that this was a sign of serious internal trouble.
Larry Weinberger of MGD Investments, who owns a 12,500-square-foot property leased by Rite Aid on Long Island, said he’s disappointed by the company’s recent rent delays. Despite their long-standing partnership, he admitted that they are now reviewing the space for alternative tenants, just in case Rite Aid can’t recover.
What’s Causing These Closures?
The chain’s troubles are a result of financial instability, high operational costs, rising debt, and changing consumer behaviour. Over the years, the company has tried to restructure and rebrand, but those efforts haven’t been enough to stop the decline.
The store closures are part of a larger plan to cut costs and focus on profitable locations. However, these closures also raise concerns about access to essential pharmacy services, especially in areas with fewer alternatives.
Rite Aid’s ongoing store closures are a clear sign that the company is still battling serious financial problems. While they are trying to recover under bankruptcy protection, the impact is being felt by loyal customers, employees, and landlords. With 178 stores closing in New York alone, and more closures in other states, the company’s future remains uncertain. Rite Aid has promised to keep providing key pharmacy services, but only time will tell how much longer it can survive this crisis.