Rite Aid Files for Bankruptcy Again, Set to Close All NY Stores
Rite Aid, once a prominent retail pharmacy chain, is facing significant challenges. The company, which operated around 2,500 locations two years ago, now has about half that number. It has filed for bankruptcy protection for the second time in less than two years, and is set to close all 178 of its CVS Pharmacy locations in New York State by next month, impacting thousands of workers statewide.
Rite Aid's struggles are not isolated. The retail pharmacy industry is grappling with intense competition from retail giants and legal battles over opioid prescriptions. CVS, another major player, has also closed more than 1,000 stores, focusing instead on smaller, pharmacy-only locations.
Rite Aid's bankruptcy filing on May 5, 2025, came just seven months after it became a private company. The company has secured nearly $2 billion in financing during this process. However, it's unclear how many of its remaining CVS Pharmacy locations will survive. Other companies may engage in 'cherry-picking', selectively acquiring profitable or strategically valuable locations to maximize their own business advantages.
Rite Aid's New York closures will begin next month, with layoffs starting on June 4. The company's future remains uncertain, with its bankruptcy proceedings ongoing. Meanwhile, Walgreens Boots Alliance, another major pharmacy chain, is going private in a deal worth up to $24 billion, reflecting the broader shifts and challenges in the retail pharmacy industry.
