the staff of the Ridgewood blog
Twp of Washington NJ, Rite Aid, one of America’s largest pharmacy retailers, has filed for Chapter 11 bankruptcy again—just 18 months after emerging from its previous financial restructuring. The company filed its latest petition in a New Jersey bankruptcy court, listing liabilities between $1 billion and $10 billion, signaling continued struggles to stay afloat amid rising debt, inflationary pressures, and fierce competition.
Why Rite Aid Is Filing for Bankruptcy Again
Despite cutting $2 billion in debt during its 2023 bankruptcy, closing hundreds of stores, and selling off its pharmacy benefit manager Elixir, Rite Aid has failed to stabilize its business. The company still carried $2.5 billion in debt as of 2024 and was unable to secure new financing to continue operating.
According to CEO Matt Schroeder, Rite Aid now plans to sell all of its assets during the bankruptcy process. Talks are already underway with national and regional buyers to reduce disruption to pharmacy services and minimize job losses.
“Our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible,” Schroeder stated.
However, an internal memo reported by Bloomberg indicates job cuts are imminent due to the lack of funding from existing lenders.
Retail Pharmacy Faces Industry-Wide Pressure
Rite Aid isn’t alone. The retail pharmacy sector—once dominated by Rite Aid, Walgreens, and CVS—is grappling with falling drug profit margins, increased competition from Amazon and Walmart, and shifting consumer habits. These factors have already led to the closure of hundreds of pharmacies nationwide, raising concerns about the rise of “pharmacy deserts”—areas with limited or no access to essential medications.
In 2023, Rite Aid operated roughly 2,000 stores. As of 2025, that number has dropped to 1,240, with notable pullbacks in Ohio and Michigan.
Even Walgreens has been hit hard, recently agreeing to a $10 billion buyout by private equity firm Sycamore Partners, a far cry from its former $100 billion valuation a decade ago.
What’s Next for Rite Aid and Its Customers
While pharmacy services are expected to continue during the bankruptcy proceedings, store closures and staff reductions could significantly affect communities that rely on local drugstores for health needs. Lawmakers and advocacy groups, including the National Community Pharmacists Association, have expressed concern about access to healthcare in vulnerable communities.
For now, Rite Aid’s future hinges on successful asset sales and the ability to maintain operations without further alienating customers or employees.
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