Rite Aid faces further store closures amid bankruptcy struggles

Buckle up, folks — Rite Aid, once a titan of American pharmacies, is shuttering even more stores as it fights to stay afloat in a financial storm of its own making, as the Daily Mail reports.

This 63-year-old pharmaceutical chain, now a shadow of its former glory, is closing an additional 17 locations across six states, adding to a staggering total of about 1,219 closures since its second bankruptcy filing, leaving just 708 stores standing in 15 states.

Let’s rewind to the beginning: Rite Aid opened its doors in Pennsylvania back in 1962, growing into a household name and peaking in 2008 with over 5,000 locations, securing its spot as the third-largest pharmacy in the U.S.

Rite Aid’s rise and dramatic fall

But the good times didn’t last — long before its 2023 bankruptcy filing, the chain was grappling with mounting troubles, watching its empire shrink to 2,100 stores by that year.

After securing $3.45 billion in new financing for a restructuring plan, Rite Aid initially slashed $2 billion in debt and locked in $2.5 billion in exit funding, a move that seemed like a lifeline.

Yet, by early 2024, those efforts stumbled, pushing the company toward a second bankruptcy and sparking a wave of mass closures that now threaten its very existence.

Latest closures hit six states

The latest round of 17 closures, detailed in a filing in New Jersey, hits Washington state hardest with 10 stores, while New York and Oregon lose two each, and Maryland, New Hampshire, and Ohio each see one store go dark.

Adding salt to the wound, Rite Aid recently crossed the grim milestone of 1,000 closures, and with more planned for later this year, the chain’s footprint is shrinking faster than a progressive’s patience for common sense.

Even beloved West Coast staple Thrifty Ice Cream, found in 500 Rite Aid spots, is at risk as these locations face the chopping block — turns out, nostalgia can’t pay the bills.

Competitors swoop in

Meanwhile, other retailers are picking over the bones: CVS has snapped up 625 Rite Aid pharmacies across 15 states and 64 stores in the Northwest, while Walgreens sealed a nearly $10 billion deal with Sycamore Partners to go private.

But don’t assume that CVS is sitting pretty — they’re planning to close 270 of their own 9,000-plus locations this year, and new laws in Arkansas and Louisiana could force them out of entire states by banning certain pharmacy ownership models.

Other chains like Albertsons and Kroger are also stepping in to take over Rite Aid’s pharmacy services, proving that in the cutthroat world of retail, one company’s collapse is another’s opportunity.

What’s next for struggling giant?

As Rite Aid transfers 26 stores to operate under different retailer names starting tomorrow, it’s clear the chain is grasping at straws to survive a crisis decades in the making.

From a peak of over 5,000 stores to a mere 708, Rite Aid’s downfall is a stark reminder that even giants can fall when they lose touch with fiscal reality — perhaps a lesson for more than just pharmacies in today’s economy.

With the threat of disappearing entirely looming large, Rite Aid’s story serves as a cautionary tale about the perils of mismanagement and the harsh truths of a competitive market that spares no one.