Rite Aid is circling the drain, again. Less than two years after its last bankruptcy filing, the struggling pharmacy chain is reportedly preparing to file for bankruptcy protection once more, and this time, it’s coming with job cuts at corporate offices in Pennsylvania.
The bad news was revealed in a leaked letter from CEO Matthew Schroeder, first reported by Bloomberg. According to the letter, Rite Aid couldn’t secure the extra funding it needed from lenders to stay afloat.
That’s a big red flag for anyone who shops at or works for the retail giant.
What’s Going Wrong This Time?
Rite Aid has been bleeding cash for years, squeezed between lawsuits, retail theft, and competition from CVS, Walgreens, and Amazon’s growing healthcare ambitions. In 2023, it filed for bankruptcy to restructure and close underperforming stores. Now, it seems that plan didn’t work.
This new bankruptcy is being driven by:
- Failure to secure capital from lenders
- Ongoing debt and legal battles
- An increasingly unprofitable store network
Who’s Getting Hit First?
The first cuts are hitting Rite Aid’s headquarters staff in Pennsylvania. Schroeder’s letter indicates that layoffs are planned at the corporate level, though there’s no official number yet.
Rite Aid hasn’t made a public statement, but industry insiders say retail closures could follow. If the bankruptcy plays out like the last one, expect store closures in waves, especially in regions with overlapping locations.
What It Means for Customers
If you’re a Rite Aid regular, here’s what to watch for:
- Store Closures: Check your local store’s hours or signage, many won’t make it through a second bankruptcy.
- Prescription Transfers: If a store shuts down, your prescriptions may be automatically transferred to a nearby location (or even a different chain).
- Rewards & Gift Cards: These may be at risk during restructuring, use them ASAP.
- Job Losses: Store-level layoffs could follow corporate cuts, especially in low-performing markets.
Can Rite Aid Be Saved?
Short answer: it’s not looking good. The company already closed hundreds of stores over the last two years, and this second bankruptcy strongly signals a potential sell-off or liquidation.
Meanwhile, competitors like Walgreens and CVS are scaling back their store footprints too, but they have diversified into telehealth, insurance partnerships, and AI-powered pharmacy systems, while Rite Aid has struggled to modernize.
Rite Aid once had over 4,600 stores. Now it’s shrinking fast, with more bankruptcy filings, job losses, and customer uncertainty on the horizon. If you’re an employee, investor, or loyal shopper, this is the time to make contingency plans, because the signs suggest Rite Aid may not get a third chance.
