Rite Aid, which also owns Bartell Drugs, in bankruptcy again, selling off almost all stores

Rite Aid filed for Chapter 11 bankruptcy for the second time on May 5, 2025, marking a critical point in the company’s efforts to restructure its operations. The drugstore chain is selling nearly all of its 1,240 store leases and its headquarters as part of this process. The company aims to facilitate a smooth transition for customer prescriptions to other pharmacies, which is essential for maintaining service continuity. In Monroe, Washington, the closure of Rite Aid would eliminate the city’s largest pharmacy, impacting local residents who relied on its services. The store, previously an independent pharmacy, transferred its prescription files to Rite Aid in December 2023.

Rite Aid's financial woes stem from significant debt and legal challenges related to opioid prescriptions, which have affected all major pharmacy chains. This bankruptcy follows its first in fall 2023, where it cut nearly half of its store count. The company will cease honoring gift cards and accepting returns at Bartell Drugs stores starting June 5, further signaling its financial distress.