News Summary
Rite Aid Corporation has filed for voluntary Chapter 11 bankruptcy, announcing plans to close 115 stores nationwide, including eight in Pennsylvania. The company aims to pursue asset sales and has secured substantial financing to support this process. As part of the transition, over 1,000 employees will be affected, and Rite Aid will help transfer customer prescriptions to alternative pharmacies. CEO Matt Schroeder remains optimistic about potential buyers as the company restructures amid significant financial challenges.
Pennsylvania – Rite Aid Corporation, based in Camp Hill, Pennsylvania, has filed for voluntary Chapter 11 bankruptcy protection as part of a strategic move to pursue a comprehensive sale process for its assets. The filing was formally announced on May 5, 2025, in the U.S. Bankruptcy Court for the District of New Jersey. As part of the bankruptcy proceedings, Rite Aid plans to close a total of 115 stores nationwide, which represents almost 10% of its approximately 1,240 locations, including eight stores in Pennsylvania.
The closure list for Pennsylvania includes a Rite Aid store located at 315 W. Fourth St. in Quarryville, Pennsylvania, along with more than 40 other locations in the state. Additional closures will occur in various states such as California and Oregon. Customers can still access pharmacy services and products at the remaining Rite Aid stores, including prescription services and immunizations, throughout the sale process.
In an effort to stabilize its financial situation, Rite Aid has obtained $1.94 billion in new financing from existing lenders. This financial support is intended to assist in the asset sale process while maintaining operational capabilities during the transition. Effective May 6, 2025, Rite Aid has ceased issuing rewards points for purchases, and any existing rewards will expire according to standard terms. By June 6, 2025, the stores will no longer accept gift cards or exchanges.
Employee Impact and Support Measures
As part of these closures, over 1,000 employees will be impacted by layoffs. The Pennsylvania Department of Labor and Industry is taking action by hosting a ‘Rapid Response’ meeting to provide assistance to those affected. Rite Aid will facilitate the transfer of customer prescriptions to alternative pharmacies, ensuring that employees involved in this process will continue to receive pay and benefits during this challenging time.
CEO’s Perspective and Future Plans
Despite facing significant financial challenges, CEO Matt Schroeder has expressed optimism regarding interest from potential acquirers, both national and regional. The company had previously indicated plans to close 47 stores, and following the current filing, an additional 68 closures have been proposed. The deadline for bids on pharmacy assets is set for May 13, with an auction scheduled for May 14, if necessary. Bids for remaining assets are due by June 13, and an auction will take place on June 20.
Community Response and Alternatives
Local Area Agencies on Aging are preparing to assist customers, particularly older adults, who may be disproportionately affected by the store closures. In response to Rite Aid’s operational changes, Summit Care Pharmacy, an independent pharmacy in Cresson, has reported a notable increase in patient traffic as individuals seek alternative options for their pharmacy needs.
Corporate Restructuring and Future Operations
As part of its restructuring initiative, Rite Aid will also close its corporate headquarters in York County and its Philadelphia office. This move is aimed at streamlining operations and further supporting the company’s strategic shift in a challenging retail environment.
In conclusion, Rite Aid’s filing for bankruptcy marks a significant moment for the company as it seeks to navigate financial difficulties and restructure its operations. The series of store closures and the process for asset sales reflect broader trends within the retail and pharmacy sectors as companies adapt to ongoing challenges and changes in consumer behavior.
Deeper Dive: News & Info About This Topic
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- USA Today: Rite Aid Bankruptcy List of Closing Stores
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- Google News: Rite Aid Store Closings 2025
