Rite Aid has closed 1,000 stores after filing for bankruptcy for the second time in two years.
The grim milestone was revealed in court papers as part of the pharmacy giant’s Chapter 11 bankruptcy filing in May.
The pharmacy giant is undergoing a complete winding down of its 1,200 physical stores.
Rite Aid has suffered years of financial trials, and has been unable to adapt to a tougher retail environment since the global Covid-19 pandemic.
The saga resulted in the company filing for bankruptcy for a second time in May, with CEO Matt Schroeder blaming ‘financial challenges’ exacerbated by ‘rapidly evolving retail and healthcare landscapes.’
Since then stores are being notified of their closure dates in brutal communication rounds.
The latest update on June 27 announced the closure of 123 locations across eight states including California, Pennsylvania and New York.
That brought the total closures in June up to 600, and brought the overall figure to 1,070, Newsweek reported.
Rite Aid filed for bankruptcy twice in just two years
The rest of Rite Aid’s locations will close or be sold-off within the year, leaving thousands of Americans in so-called ‘pharmacy deserts’ — communities that do not have sufficient access to drugstores.
More than 48 million Americans now lack access to a nearby drugstore, research from healthcare company GoodRx found.
The figure has increased markedly from 41.2 million in 2021, according to the research.
Rite Aid rivals CVS and Walgreens have also suffered financial pressures in recent years and have been forced to shutter stores.
CVS has gone through a series of strategic store closures, including 270 closures this year.
Walgreens is also reportedly considering a $10 billion deal to sell itself to private equity firm Sycamore Partners.
Online competitors — like upstarts Capsule, Blink Health, and even Amazon — have been eating at the brick-and-mortar giants because of their delivery methods and convenience.
For years, Rite Aid racked up billions of dollars of debt, forcing executives to declare its first bankruptcy in September 2023.
Rite Aid’s CEO, Matt Schroeder said filing for bankruptcy was a financial necessity
A woman browses through near empty shelves at a Rite Aid store in Alhambra, California, in 2023
Rite Aid has now closed more than 1,000 stores
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On top of Rite Aid’s financial woes, it faced a series of lawsuits after being accused of overprescribing opioids.
After eliminating $2 billion in debt in its first restructuring in 2023, the company failed to regain financial stability during its latest round of business.
Last month Rite Aid was also given court approval to sell off its Thrifty Ice Cream brand for $19.2 million.
Founded in 1940, the brand launched as a drug store in downtown Los Angeles that allowed customers to sample ice cream.
The ice cream gained a cult status by the 1970s and garnered ‘significant celebrity shoutouts.’