In May 2025, Rite Aid filed for Chapter 11 bankruptcy for the second time in less than two years, announcing plans to sell “substantially all” of its assets.CEO Matt Schroeder attributed the move to mounting financial pressures and rapid transformations in both the retail and healthcare landscapes.
The company previously filed for bankruptcy in October 2023 and emerged in September 2024 after a major restructuring and debt reduction.
Here are five major developments in the company’s ongoing asset sale:
1. On May 22, a federal judge approved Rite Aid’s bankruptcy plan, allowing the company to shut down select stores and sell the majority of its pharmacy assets to national competitors.
2. CVS, Walgreens and grocery chains including Albertsons, Kroger and Giant Eagle have entered separate agreements to acquire Rite Aid assets. These deals include prescription services and approximately 810 of the company’s 1,240 pharmacy locations.
3. CVS is set to be the largest purchaser, planning to take over prescriptions from 650 Rite Aid pharmacies and acquire 64 retail stores. Rite Aid stated that all affected locations will remain open, with no disruption to prescription services.
4. As part of its bankruptcy proceedings, Rite Aid will shutter its Mid-Atlantic Distribution Center in Aberdeen, Md., by early June. The closure will result in 363 layoffs, effective June 4.
5. Despite the bankruptcy proceedings, Rite Aid stores and online platforms remain operational. Customers will still be able to access pharmacy services and products. Additionally, the company is working to transfer customer prescriptions to other pharmacies as part of the transition. Employees assisting with this process will continue to receive pay and benefits.
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