Rite Aid, once a titan of American pharmacies, is crumbling under financial distress with yet another wave of store closures on the horizon.
According to the Daily Mail, in a disheartening update, the 63-year-old pharmaceutical chain announced plans to shutter an additional 17 stores across six states in 2025, bringing the total number of closures to approximately 1,219 since its second bankruptcy filing.
Founded in Pennsylvania in 1962, Rite Aid grew into a household name, peaking at over 5,000 locations in 2008 as the third-largest pharmacy chain in the U.S.
However, the company’s fortunes reversed, with struggles mounting long before its first bankruptcy filing in 2023, when it operated 2,100 stores.
That year, Rite Aid secured $3.45 billion in new financing for its restructuring plan, which included slashing $2 billion in debt and securing $2.5 billion in exit financing.
Initially, the plan showed promise, but by April 2025, the company was plotting a second bankruptcy as efforts unraveled.
Since the latest bankruptcy, Rite Aid has initiated multiple rounds of mass closures, with the most recent—its 12th notice—filed on July 18, 2025, in New Jersey.
This round targets 17 stores, with Washington state being hit hardest, with 10 closures, followed by New York and Oregon with two each, and Maryland, New Hampshire, and Ohio with one apiece.
The chain recently marked a grim milestone of 1,000 closures, and now operates just 708 stores across 15 states—a number set to shrink further.
Beyond numbers, these closures threaten related businesses like Thrifty Ice Cream, a West Coast chain operating in 500 Rite Aid locations, facing shutdowns.
Meanwhile, 26 stores are slated to transfer to other retailers starting July 24, 2025, as Rite Aid sheds assets to survive.
Competitors are circling, with CVS acquiring 625 Rite Aid pharmacies across 15 states and 64 stores in Idaho, Oregon, and Washington, while Walgreens and others like Albertsons and Kroger snap up locations and services.
Yet, the pharmacy sector isn’t a haven—CVS plans to close 270 of its over 9,000 U.S. locations in 2025, and faces potential exits from Arkansas and Louisiana due to new laws targeting Pharmacy Benefit Managers. Walgreens, too, is navigating challenges, recently finalizing a nearly $10 billion deal with Sycamore Partners to go private by the end of 2025 after acquiring some Rite Aid assets.
For investors and consumers, Rite Aid’s collapse is a stark reminder of market realities—overexpansion, debt, and poor adaptation can sink even giants. As pharmacy chains consolidate, consider focusing on diversified healthcare investments or ETFs to hedge against single-company risks and stay frugal as retail landscapes shift.