Rite Aid, a major pharmacy chain in the US, has filed for bankruptcy for the second time in less than two years. This decision has led to a new round of store closures, including several locations in Connecticut. The company is struggling with high debt and low sales, forcing it to take major steps to survive.
Rite Aid is now trying to sell the business while continuing to cut costs by closing underperforming stores.
Why Rite Aid Filed for Bankruptcy Again
Rite Aid recently filed for Chapter 11 bankruptcy protection in a New Jersey court. The company listed its debts between $1 billion and $10 billion. This is not the first time Rite Aid has done this. In September 2024, it also went through a similar process to reduce its debt. However, that effort did not solve its financial problems.
Now, the company hopes this second bankruptcy will help it find a buyer and give it a fresh start. But as part of the process, Rite Aid is closing more stores and cutting down on expenses.
Rite Aid Store Closures in Connecticut
Three Rite Aid stores in Connecticut are now closing down. The Cheshire location shut its doors on Thursday. The Danbury store closed earlier on May 14. The Naugatuck store will close on May 19. These closures are directly linked to the bankruptcy process.
Despite these shutdowns, Rite Aid will still have some stores open in Connecticut. Locations in Wolcott, Norwalk, Stratford, Milford, Ridgefield, and Brookfield will continue to operate for now.
What Happens to Employees and Customers
Because of the closures, many employees are losing their jobs. Rite Aid’s CEO Matt Schroeder shared the news in a letter to staff, explaining that job cuts are necessary due to a lack of extra funding from lenders. Still, the company has promised that employees will continue to receive their pay and benefits during this period.
For customers, the closure of local Rite Aid stores could be inconvenient. However, the company is working to make sure people still have access to their prescriptions. For example, customers of the now-closed Cheshire store will have their prescription files moved to a nearby CVS Pharmacy at 581 Highland Avenue.
Changes for Rite Aid Customers
Along with the closures, Rite Aid is also ending some of its services. From June 5, the company will no longer give out rewards points, accept gift cards, or process returns and exchanges. This is part of the changes being made under the bankruptcy plan.
Rite Aid’s Ongoing Struggles
Rite Aid was once the third-largest pharmacy chain in the US, behind only CVS and Walgreens. In 2023, the company had around 2,000 stores. Now, after years of financial trouble and falling sales, only about 1,240 stores remain.
Retail experts had predicted this move for months. Many stores were having trouble keeping basic items like toothpaste, shampoo, and mouthwash on the shelves. This added to the pressure on the company.
As Rite Aid continues to fight for its future, many are wondering if this second bankruptcy will be its last chance to survive.
Rite Aid is once again in deep financial trouble, forcing it to close more stores and lay off staff. In Connecticut, three locations are shutting down as part of the bankruptcy plan. While the company is still operating in some areas, it remains uncertain what the future holds. With debts running into billions and fewer stores than before, Rite Aid is trying to stay alive by selling its business. Customers can expect more changes ahead, especially as the company continues to deal with serious financial pressure.