Rite Aid Seeks Buyer After Second Bankruptcy Filing in Less Than a Year

Rite Aid has filed for bankruptcy for the second time in under a year, the company announced Monday, marking another low point for the embattled drugstore chain. This comes just seven months after it exited Chapter 11 as a private entity.

In its statement, the company said the decision aims to ease the process of finding a buyer, all while maintaining its retail operations. Rite Aid confirmed that its stores would continue serving customers during the bankruptcy.

CEO Matt Schroeder expressed cautious optimism, citing encouraging interest from multiple potential buyers and underlining the importance of keeping pharmacy services and jobs intact.

Rite Aid’s first bankruptcy came in October 2023, prompted by competitive disadvantages, poor market performance, and lawsuits related to its alleged role in the opioid crisis. These factors had ballooned its debt to nearly $4 billion.

After exiting bankruptcy in September 2024, the company had managed to eliminate $2 billion in debt and raised $2.5 billion in funding, along with closing about 500 locations to cut costs.

Despite that, Rite Aid revealed Monday that it has now secured an additional $2 billion in funding to continue its operations while going through the latest bankruptcy.

1. Once a national powerhouse, Rite Aid now ranks third among standalone pharmacy chains in the U.S., with just 1,250 locations left—half the count from two years prior. A failed $17 billion merger with Walgreens in 2015 only worsened its market position.

2. According to Neil Saunders of GlobalData, the second bankruptcy was expected, given the chain’s persistent inventory issues. With Walgreens and CVS also struggling, Rite Aid’s stores may be selectively acquired by rivals seeking to expand.