Struggling Rite Aid Files for Bankruptcy Again, Seeks New Ownership

Rite Aid has once more filed for Chapter 11 bankruptcy protection, announcing the move just months after completing its previous bankruptcy process. The pharmacy chain is looking for a buyer to take over its troubled operations.

Despite the new filing, the company says its stores will stay open and continue serving customers. Rite Aid hopes the restructuring will make it easier to find a suitable acquirer.

CEO Matt Schroeder stated the retail and healthcare environments remain difficult but noted there has been interest from potential national and regional buyers. He emphasized customer service continuity and employee retention.

Rite Aid’s initial bankruptcy last October was driven by overwhelming debt and legal issues, especially those related to opioid distribution allegations. These challenges pushed the company’s debt close to $4 billion.

When it emerged from Chapter 11 in September 2024, Rite Aid had cut debt by $2 billion, secured funding, and closed roughly 500 stores. However, the turnaround proved short-lived.

The company now says it has locked in nearly $2 billion in additional financing to stay operational while working through bankruptcy once again.

Rite Aid’s decline was further cemented by the failed full acquisition by Walgreens in 2015. A smaller deal eventually stripped Rite Aid of nearly 2,000 stores, weakening its market position.

Neil Saunders of GlobalData commented that Rite Aid’s financial restructuring last year didn’t address core problems. He believes the brand is likely to be broken up, with other chains acquiring individual locations.