Rite Aid Officially Closes All Stores Amid Second Bankruptcy Filing in 2025

Rite Aid, which was once among the largest pharmacy chains in the country, has now closed all of its stores after ongoing financial troubles and a second Chapter 11 bankruptcy this year. The company, known for serving millions with prescriptions and everyday items, said the closures are part of its efforts to restructure after failing to recover.

All Rite Aid stores have now closed after years of growing debt, tough competition, and legal problems. At its peak, the company ran over 5,000 locations across the country, so this marks the end of an era.

Background: From Prominence to Decline

Rite Aid started in 1962 and grew into a major pharmacy retailer with thousands of stores. In recent years, though, the company faced many challenges. Competition increased as CVS and Walgreens expanded, and online pharmacies and grocery stores offered more pharmacy services. Rite Aid could not keep up, which led to falling sales and profits.

Rite Aid’s financial problems got worse because of more than 1,000 lawsuits related to the opioid crisis, which cost the company a lot in settlements and legal fees. Debt increased, and inflation made things harder. Even after filing for bankruptcy in October 2023 and closing hundreds of stores, the company’s financial troubles continued.

The Second Bankruptcy and Final Closures

In May 2025, Rite Aid filed for Chapter 11 bankruptcy again, less than two years after its last filing. This showed the company could not fix its finances. The plan included selling most of its stores and pharmacy assets to competitors and grocery stores.

By September 2025, Rite Aid had just 89 stores left in 78 cities, but all of them closed by early October. The company’s website confirms that all locations are now closed and thanks customers for their loyalty over the years.

Asset Sales and Pharmacy Transition

To help customers keep getting their prescriptions, Rite Aid set up transfers of prescriptions and assets to major pharmacies like CVS, Walgreens, Albertsons, Kroger, and Giant Eagle. The goal was to make the change as smooth as possible for patients.

Giant Eagle acquired prescription files and converted some Rite Aid stores in Pennsylvania and Ohio into its own pharmacies, hiring many former Rite Aid pharmacists. CVS was another major buyer, acquiring 64 stores and prescription files from 600 locations, primarily in the Pacific Northwest.

Rite Aid also sold its Thrifty Ice Cream brand for $19.2 million as part of its bankruptcy asset sales.

Impact on Customers and Employees

With all Rite Aid stores closed, customers now need to find new pharmacies for their prescriptions. To aid this transition, here are some steps you can follow:

1. Visit Rite Aid’s website to access resources for finding other pharmacies and retrieving your records.

2. Contact your healthcare provider to confirm where your prescriptions have been transferred.

3. If needed, ask your doctor to issue new prescriptions to your preferred pharmacy.

4. Reach out to your new pharmacy to confirm they have received your transferred prescriptions and verify any next steps.

Following these steps can help ensure a smooth transition and continued access to your medications.

Rite Aid employees and pharmacists lost their jobs, with an estimated 5,000 personnel affected by the closures. However, some, particularly in areas where Giant Eagle expanded, were able to find new work during the transition. For example, in Pennsylvania and Ohio, Giant Eagle hired approximately 300 former Rite Aid staff members, facilitating a smoother transition for both employees and customers.

Reasons Behind the Closure

Rite Aid’s demise can be attributed to several factors:

• Persistent financial struggles with a heavy debt burden exceeding several billion dollars.

• Increased competition from dominant pharmacy chains (CVS, Walgreens) and the rise of online pharmaceutical services.

• Expensive legal settlements related to opioid litigation, which included payouts exceeding hundreds of millions of dollars. These settlements had a significant impact on Rite Aid's financial stability and contributed to its mounting debts.

• Operational challenges, including supply chain issues and the inability to keep stores adequately stocked.

• Inflation and changing healthcare retail landscapes .

Even after several bankruptcy filings and efforts to restructure, Rite Aid was unable to regain profitability or keep pace with the evolving market.

Final Thoughts

The closure of all Rite Aid stores is a significant change for pharmacies in the U.S. Rite Aid was once a top chain, and its demise highlights the challenges traditional pharmacies face in today’s market. Customers should find new pharmacies soon to avoid gaps in their medication. Experts note that pharmacy chains are merging at a higher rate than ever. This trend suggests a future where a few large players could dominate the market, potentially impacting consumer choices and pricing. Additionally, the rise of online pharmacies and telehealth services continues to reshape how patients access medications, pushing traditional models to adapt rapidly.

With this change, Rite Aid stores are no longer part of local communities. The company leaves behind a long history of service, serving as a reminder of the importance of adapting in retail healthcare.