Rite Aid, the once-dominant drugstore chain with 18 stores on Long Island, has filed for bankruptcy and announced plans to sell off its assets, including customer prescription records and properties.
The Philadelphia-based retailer is returning to Chapter 11 bankruptcy proceedings for the second time as it closes stores and shifts prescription services to other providers.
In a letter to customers, Rite Aid said that most of its 1,245 remaining stores in 15 states will remain open for the next few months, allowing customers to fill prescriptions, receive immunizations, and shop in-store and online during the sale process. However, the company also warned that it would soon stop issuing rewards points, and by next month, gift cards, returns, and exchanges will no longer be honored.
“It’s sad to see them go,” said long time customer Dennis Warnken outside the Eastport store. “It was very convenient. I guess I’ll have to drive to the CVS in Center Moriches.” Warnken said he’s been going to the Rite Aid for about 20 years. “Before that, it was a Genovese drug store,” he noted. “I wonder what they’ll put in next.”
This latest filing comes just months after Rite Aid emerged from its first bankruptcy in 2023, which was intended to help the company cut debt, settle opioid-related litigation, and streamline operations. During that time, Rite Aid shuttered hundreds of stores—including 26 on Long Island—and sold its pharmacy benefit manager, Elixir Solutions, for $576 million. It has secured $1.94 billion in new financing from existing lenders to support operations during the transition.
Despite reorganization efforts and a reduced store footprint, Rite Aid continued to face headwinds: shrinking prescription margins, rising retail theft, a shift in consumer behavior toward online and discount retailers, and costly opioid settlement payments.
Founded in 1962 in Scranton as Thrif D Discount Center, Rite Aid was rebranded in 1968 and became the nation’s third-largest pharmacy chain by the early 1980s. At its peak, the company operated more than 4,600 stores. A proposed $9.4 billion buyout by Walgreens in the mid-2010s fell through under antitrust scrutiny, and only a portion of the stores were acquired.
Rite Aid’s bankruptcy marks another major shift in the U.S. pharmacy landscape, which continues to consolidate amid economic pressures and changing consumer habits.