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Rite Aid files Chapter 11, plans asset sale and closures
Stacy Wescoe//May 6, 2025//
Listen to this articleCamp Hill- based Rite Aid Corporation has once again filed for bankruptcy.
The company announced that it and its subsidiaries commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of New Jersey.
The company said in a release that it “is pursuing a strategic and value-maximizing sale process for substantially all of its assets.”
During this process, Rite Aid said its customers can still access pharmacy services and products in stores and online, including prescriptions and immunizations.
Starting May 6, however, it will not be issuing rewards points for purchases and rewards will expire on standard terms. Stores will stop taking gift cards or accepting exchanges beginning June 6.
Meanwhile, it said it is working to transfer customer prescriptions to other pharmacies.
Rite Aid employees assisting with this process will continue to receive pay and benefits.
Matt Schroeder, CEO of Rite Aid, commented on the news.
“For more than 60 years, Rite Aid has been a proud provider of pharmacy services and products to our loyal customers,” Schroeder said. “While we have continued to face financial challenges, intensified by the rapidly evolving retail and healthcare landscapes in which we operate, we are encouraged by meaningful interest from a number of potential national and regional strategic acquirors.”
He said to support Rite Aid during its sale process; the company has secured commitments from certain of its existing lenders to access $1.94 billion in new financing.
This financing, along with cash from operations, is expected to provide sufficient funding during the sale and court-supervised process. The company intends to divest or monetize any assets that are not sold through the court-supervised process.
