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An empty retail space symbolizing the closure of Rite Aid stores
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Rite Aid pharmacy chain closes its last remaining stores

Rite Aid Closes All Remaining Stores Nationwide

Rite Aid closed its last 89 stores this week after filing for bankruptcy twice in less than two years, ending 63 years of operation.

  • Rite Aid closed all remaining stores nationwide
  • Company filed for bankruptcy twice since 2023
  • Last 89 stores shuttered in early October
  • Once operated more than 5,000 locations nationwide
  • Faced over 1,600 opioid crisis related lawsuits
  • Paid $7.5 million in Justice Department settlement
  • Pharmacy operations sold to CVS and Walgreens
  • Industry closures raise pharmacy desert concerns nationwide

Rite Aid has closed all its remaining stores after filing for bankruptcy twice in less than two years, ending over six decades of operations. The company announced the shutdown on its website on October 3, 2025, marking the final collapse of what was once America’s third-largest pharmacy chain.[1][2]

Timeline of Store Closures

Rite Aid shuttered its last 89 stores this week, completing a rapid decline that began with its first bankruptcy filing in October 2023.[3] At that time, the company operated over 2,100 locations across the United States.[4]

The first restructuring reduced debt by approximately $2 billion and led to the closure of roughly 800 underperforming stores.[5] Rite Aid emerged from bankruptcy in August 2024 as a private company, but still carried $2.5 billion in debt.[6]

Second Bankruptcy Filing

In May 2025, Rite Aid filed for Chapter 11 protection again, operating approximately 1,277 stores across 15 states from California to Vermont.[7] The company secured $1.94 billion in new financing from existing lenders to maintain operations during bankruptcy proceedings.[8]

CEO Matt Schroeder emphasized the focus on ensuring uninterrupted pharmacy services for customers and preserving jobs for associates.[9] However, the company ultimately pursued a court-supervised sale of remaining assets, with most pharmacy operations sold to CVS, Walgreens, Albertsons, Kroger and Giant Eagle.[10]

Company History and Peak Operations

Founded in 1962 as Thrift D Discount Center in Scranton, Pennsylvania, Rite Aid grew into one of America’s largest pharmacy chains.[11] By 1987, it had become the largest drugstore chain in the United States with more than 2,000 stores.[12]

At its peak, Rite Aid operated approximately 5,000 locations nationwide.[13] The company had opportunities to merge with Walgreens in 2017 and Albertsons in 2018, but rejected both offers.[14]

Failed Turnaround Efforts

CEO Heyward Donigan, appointed in August 2019, launched the RxEvolution strategy, which included a new logo, revamped stores branded as Stores of the Future, and a shift toward holistic health services.[15] In late 2020, Rite Aid acquired Seattle-based Bartell Drugs, adding 67 stores for $95 million.[16]

Despite these efforts, Rite Aid posted significant losses, including $750 million in fiscal year 2023.[17] Donigan resigned in January 2023, replaced by interim CEO Elizabeth Burr.[18]

Rite Aid faced more than 1,600 lawsuits related to its role in the opioid crisis by late 2023.[19] The Justice Department filed a complaint in March 2023, accusing the company of violating the False Claims Act and Controlled Substances Act by filling unlawful prescriptions for oxycodone, fentanyl and benzodiazepine.[20]

The company denied the allegations but reached a settlement with the Justice Department in June 2024.[21] Under the agreement, Rite Aid paid the government $7.5 million without admitting wrongdoing.[22] The settlement resolved allegations that Rite Aid pharmacies ignored internal red flags about suspicious prescriptions.

In 2022, Rite Aid had paid approximately $30 million to resolve separate lawsuits claiming it contributed to opioid distribution across the United States.[23]

Industry-Wide Pharmacy Closures

Rite Aid’s closure reflects broader challenges facing the pharmacy industry. Other major chains have closed thousands of locations in recent years due to heightened competition, inflationary pressures, and increased theft.[24]

CVS Store Closures

CVS launched an out-of-court restructuring in 2021 to close 900 of its nearly 9,900 stores.[25] The company shut down 300 locations annually in 2022, 2023 and 2024, then expanded closures in 2025 by announcing 271 additional store shutdowns in its February annual report.[26] Since 2021, CVS has closed over 1,171 stores total.[27]

Walgreens Restructuring

Walgreens, recently acquired by private equity firm Sycamore Partners, evaluated 2,000 of its approximately 8,600 stores for potential closure.[28] The company identified 1,200 locations to close over three years, with 500 shuttered in fiscal year 2025.[29]

Pharmacy Desert Concerns

Experts have raised concerns about pharmacy deserts, where communities lack convenient access to prescription services.[30] Between 2023 and 2025, Rite Aid alone closed approximately 2,088 stores.[31] The combined closures from major chains have left many Americans living far from pharmacies, particularly affecting rural and underserved urban areas.

Rite Aid’s website now provides tools for former customers to retrieve pharmacy records and find new pharmacies where prescriptions were transferred.[32]

Rachel Patel

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Rachel Patel is a senior news editor and journalist specializing in political journalism and digital media. With over seven years of professional experience, she is recognized for her accuracy, source verification, and audience-focused reporting approach. Rachel earned her M.S. in Journalism & Media Studies from Stanford University (2018), where she developed expertise in media ethics, political communication, and digital storytelling. Her career has centered on bridging traditional political reporting with the fast-paced world of online journalism. She has contributed to major global media outlets, analyzing how digital platforms — from YouTube and Reddit to TikTok and Bluesky — shape political narratives, influence public opinion, and redefine news consumption. Now based in Berlin, Germany, Rachel serves as a Senior News Editor at Faharas NET, leading coverage on digital politics, media literacy, and social communication trends in the modern information landscape.

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Editorial Timeline

Revisions
— by Elena Voren
Add SEO improvements
— by Kamar Mahmoud
Featured image added to article
— by Nodin Laramie
  1. Complete article rewrite with verified current data as of October 11, 2025
  2. Added comprehensive timeline of store closures and bankruptcy filings
  3. Expanded company history section with founding details and peak operations
  4. Added detailed opioid crisis legal challenges section with settlement information
  5. Included industry-wide pharmacy closure context with CVS and Walgreens data
  6. Added proper H2 and H3 heading structure for improved readability
  7. Inserted 32 citation references to authoritative sources
  8. Enhanced BLUF opening paragraph for immediate clarity
  9. Updated TL;DR section with 8 key points of 7 words each
  10. Expanded FAQ section with comprehensive 40-75 word answers
  11. Added Secondary Sources section with 32 numbered citations
  12. Improved article structure with logical flow and semantic organization

Correction Record

Accountability
— by Nodin Laramie
  1. Updated store closure date to October 3, 2025 from vague recent timeframe
  2. Corrected final store count to 89 remaining stores from fewer than 100
  3. Updated bankruptcy emergence date to August 2024 from September 2024
  4. Corrected Justice Department settlement amount from $30 million to $7.5 million
  5. Fixed settlement date from 2022 to June 2024 for Justice Department case
  6. Clarified separate $30 million settlement was in 2022 for different opioid lawsuits
  7. Updated CVS closure count from over 1,000 to 1,171 stores since 2021
  8. Corrected Walgreens acquisition details to Sycamore Partners private equity firm
  9. Added specific bankruptcy filing dates October 15, 2023 and May 2025
  10. Updated store count at second bankruptcy to 1,277 from approximately 1,245
  11. Corrected CEO succession details and timeline for leadership changes
  12. Added new financing amount of $1.94 billion for second bankruptcy

FAQ

Why did Rite Aid close its stores?

Rite Aid closed its stores due to mounting debt exceeding $2.5 billion, declining sales from increased competition with CVS and Walgreens, and over 1,600 lawsuits related to the opioid crisis. The company filed for Chapter 11 bankruptcy twice in less than two years, first in October 2023 and again in May 2025, ultimately leading to complete liquidation.

What were the bankruptcy dates for Rite Aid?

Rite Aid filed for Chapter 11 bankruptcy protection on October 15, 2023, closing over 800 stores during restructuring. The company emerged from bankruptcy in August 2024 as a private entity but filed for bankruptcy again on May 2025 due to continued financial pressures. This second filing led to the closure of all remaining 1,277 stores.

How many stores did Rite Aid have at its peak?

At its peak, Rite Aid operated approximately 5,000 stores across the United States. The company was founded in 1962 as Thrift D Discount Center in Scranton, Pennsylvania, and by 1987 had become the largest drugstore chain in America with over 2,000 stores. It grew to become the nation's third-largest standalone pharmacy chain before its collapse.