Rite Aid, the once-thriving pharmacy chain, is facing a significant downturn as it embarks on a path of closures and bankruptcy proceedings. Following its announcement of Chapter 11 bankruptcy on May 5, 2025, the company has identified a "first wave of closures" impacting numerous locations across the United States, including Washington, New York, California, Oregon, and Pennsylvania.
With over 1,200 stores operating across 15 states, Rite Aid's decision to shutter or sell locations comes as a response to ongoing financial challenges. The company has been grappling with a heavy debt load, declining sales, and mounting legal issues related to the opioid crisis. These factors have culminated in a dire need for restructuring.
In Washington, two Rite Aid locations have been earmarked for closure: Store #6347 at 250 Basin St. SW in Ephrata and Store #6917 at 248 Bendigo Blvd. S in North Bend. The North Bend store is notable as it was previously a Bartell Drugs, acquired by Rite Aid in 2020.
According to a report by USA TODAY, customers will still have access to pharmacy services during this transition. However, the timeline for the closures remains uncertain as plans await approval. The company has stated that it intends to continue providing essential pharmacy services even as it navigates this challenging period.
In New York, Rite Aid is set to shut down or sell 178 stores, including 35 within New York City. The retail spaces range from nearly 9,000 square feet in Sunset Park to just under 11,000 square feet in the West Village. Despite rumors of immediate closures, attorney Alice Eaton clarified that not all stores would close right away, although a Rite Aid in Bensonhurst is indeed scheduled for closure on May 12, 2025.
Meanwhile, in California, Rite Aid has identified 19 locations for closure as part of its initial wave of shutdowns. This includes stores in cities such as Costa Mesa, Long Beach, and Los Angeles. The company plans to auction off most of its locations, with the process expected to begin in May 2025. Court records indicate that A&G Real Estate Partners will manage these auctions.
In Oregon, four stores have been slated for closure, including locations in The Dalles, Portland, Klamath Falls, and Bend. Rite Aid's financial struggles have prompted CEO Matt Schroeder to acknowledge the evolving retail and healthcare landscapes that have intensified these challenges. He emphasized the company's commitment to ensuring uninterrupted pharmacy services for customers.
As Rite Aid attempts to navigate its bankruptcy proceedings, it has secured $1.94 billion in new financing to maintain operations during this tumultuous period. The company aims to facilitate the transfer of customer prescriptions to other pharmacies while keeping its stores operational as long as possible.
The impact of these closures extends beyond the immediate loss of retail locations. The potential for vacant storefronts raises concerns about the so-called "zombie pharmacy" issue, where closed pharmacies leave behind empty spaces that landlords struggle to fill. This problem has been exacerbated in New York, where long-term leases often prevent rapid turnover of commercial spaces.
In Washington, the future of Bartell Drugs, a beloved local pharmacy chain, hangs in the balance as Rite Aid plans to close all Bartell locations unless a buyer emerges. The acquisition of Bartell by Rite Aid was intended to preserve its unique character, but many customers are now left disheartened by the impending closures. A state filing revealed that Rite Aid plans to lay off 131 employees by June 4, 2025, as part of these changes.
The company’s history reflects a series of ambitious expansions, including the acquisition of Thrifty Payless in 1996 and Eckerd and Brooks stores in 2007. However, these expansions contributed to the staggering debt that now burdens the company. In recent years, Rite Aid has struggled to keep pace with competitors like CVS and Walgreens, leading to its first bankruptcy filing in October 2023.
As Rite Aid moves forward, it faces a critical juncture. The company is not only looking to sell its stores but also to reinvent itself amid a rapidly changing retail landscape. The upcoming auctions and closures represent a significant shift for the brand and its customers, who have relied on Rite Aid for pharmacy services for decades.
In conclusion, the fate of Rite Aid remains uncertain as it embarks on this challenging journey through bankruptcy. The company's ability to adapt and respond to the evolving needs of consumers will ultimately determine its future in the competitive pharmacy market.
