The basics:

• Rite Aid filed for Chapter 11 less than a year after emerging from bankruptcy
• The company plans to sell most assets and has secured $1.94B in new financing
• Rite Aid says pharmacy services will continue at its 1,240 stores
• May 7 update: WARN filing notes 1K+ positions in NJ and PA to be cut starting in June

Less than two years after seeking bankruptcy protection, Rite Aid filed again for Chapter 11.

In a petition filed May 5 in U.S. Bankruptcy Court for the District of New Jersey, the Philadelphia-based retail pharmacy chain said it is pursing the sale of “substantially all” assets.

Rite Aid said it is in active discussions with “multiple interested potential acquirers.” Additionally, the company said that $1.94 billion in new financing commitments will support the court-supervised sale process.

This financing, along with cash from operations, is expected to provide sufficient funding during the process. Any assets not sold will be divested or monetized, Rite Aid said.

According to the company, customers will be able to continue accessing pharmacy services and products, both online as well as at Rite Aid’s 1,240 stores nationwide. As part of the proceedings, the company said it is working to transfer prescriptions to the pharmacies.

Rite Aid has not announced specifics about store closure plans or employee impacts. However, in a filing with the New Jersey Department of Labor & Workforce Development, the company said it will eliminate 1,092 positions at its New Jersey locations and its Philadelphia headquarters on a rolling basis starting June 4.

In its petition, Rite Aid listed liabilities in the range of $1 billion to $10 billion.

The filing comes less than a month after The Wall Street Journal reported that Rite Aid was mulling another Chapter 11.

Rite-sizing

Rite Aid emerged from bankruptcy in September 2024 with a reduced store footprint and decreased debt. Through the process, the company closed hundreds of locations, eliminated $2 billion in debt and sold its pharmacy benefit company, Elixir.

Under the restructuring process, it named Matt Schroeder as its new CEO and secured $2.5 billion in exit financing to support the business going forward. Additionally, Rite Aid now operates as a private company with ownership held by many of its creditors.

Rite Aid’s initial bankruptcy filing in October 2023 came amid falling sales and heavy debt from 1,600 lawsuits – including one from the federal government – that accused the company of contributing to the deadly U.S. opioid epidemic.

Since then, Rite Aid has closed more than 500 pharmacies nationwide, including three dozen locations in New Jersey. Of the chain’s remaining 1,240 stores, 60 are in the Garden State, according to its website.

A ‘rapidly evolving’ landscape

In a statement following the latest Chapter 11 petition, Schroeder said, “For more than 60 years, Rite Aid has been a proud provider of pharmacy services and products to our loyal customers. While we have continued to face financial challenges, intensified by the rapidly evolving retail and health care landscapes in which we operate, we are encouraged by meaningful interest from a number of potential national and regional strategic acquirers.”

“As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible,” he continued.

Schroeder went on to express his gratitude to the company’s employees. “I thank our entire team – from store associates to corporate employees – for their dedication to our customers and our company,” he said. “With their support, we have played a critical role in supporting the healthcare needs of countless Americans across the communities that we are honored to serve.”

Editor’s note: This story was updated at 10:17 a.m. May 7, 2025, to include information from a filing with the New Jersey Department of Labor & Workforce Development about position cuts.