Rite Aid Corporation has filed for Chapter 11 bankruptcy protection for the second time in less than two years. The filing, made on May 5, 2025, in the U.S. Bankruptcy Court for the District of New Jersey, lists the company’s assets and liabilities each between $1 billion and $10 billion.
The Philadelphia-based pharmacy chain intends to sell most of its assets as part of a strategic sale process. Despite the bankruptcy proceedings, Rite Aid plans to keep its approximately 1,240 stores open during the process and ensure customer prescriptions are transferred appropriately.
To support operations during the restructuring, Rite Aid has secured nearly $2 billion in financing from lenders. The company previously filed for bankruptcy in October 2023, aiming to reduce debt and restructure its operations. It emerged from bankruptcy in August 2024 as a privately held entity with fewer than 1,245 stores, after selling its pharmacy benefits management arm, Elixir Solutions.
Persistent challenges, including declining prescription profits, increased competition from retail giants, and ongoing opioid litigation liabilities, have continued to strain the business. These factors, along with shifting consumer preferences and inflation, have contributed to the company’s financial difficulties.
CEO Matt Schroeder noted that there is ongoing interest from several potential national and regional buyers for the company’s assets. Rite Aid has engaged legal and financial advisors to assist with the sale process. The company has also indicated plans to reduce its corporate workforce in Pennsylvania after failing to secure additional funding to sustain operations.
As the company navigates the bankruptcy proceedings, it continues to prioritize maintaining pharmacy operations and ensuring a smooth transition for its customers.
