Rite Aid closing all remaining New York stores after second bankruptcy filing

Rite Aid is closing the rest of its New York stores after long-standing financial issues, according to multiple reports.

The drug store chain, which has 178 still-open stores in the state, filed for bankruptcy Monday — the second time in two years that the company has filed for relief from its creditors.

According to Rite Aid, the store will be “pursuing a strategic and value-maximizing sale process for substantially all of its assets,” and will commence voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of New Jersey. Over the next few months, all Rite Aid distribution centers will close, and all remaining New York stores will either close or be operated by a new owner.

The first round of employee layoffs is expected to start on June 4. Rite Aid, meanwhile, will work with customers to ensure that their prescriptions are transferred to other pharmacies as the closings take place.

Empty, locked up shelves at the Junction Blvd Rite Aid location in Queens. — Many Rite Aid items are under protective cases following thefts.

“For more than 60 years, Rite Aid has been a proud provider of pharmacy services and products to our loyal customers. 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. As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible,” said Matt Schroeder, Chief Executive Officer of Rite Aid. “I will be forever grateful to our thousands of associates for their commitment to Rite Aid and its mission, and I thank our entire team – from store associates to corporate employees – for their dedication to our customers and our company. With their support, we have played a critical role in supporting the healthcare needs of countless Americans across the communities that we are honored to serve.”

Rite Aid initially filed for bankruptcy back in October 2023 after reporting $750 million in losses during the previous fiscal year. The move resulted in the closure of four New York City store locations at the time. Several other store locations across New York City have closed as a result of ongoing financial strife for the brand.

The pharmacy chain has had its fair share of financial woes in recent years. Many companies faced struggles amid the COVID-19 pandemic, Rite Aid was further hit with several lawsuits for allegedly perpetuating the opioid epidemic.

an empty shelf at Rite Aid — Photo by Dean Moses

The chain was up against more than 1,000 lawsuits related to painkillers, mostly from individual plaintiffs, with one damning lawsuit out of Ohio in March 2023 where he Northern District of Ohio sued the company for allegedly filling many opioid prescriptions that it should not have.

Rite Aid leadership also blamed the uptick in post-pandemic thefts for the brand’s ongoing financial troubles.

The following stores currently remain in New York City and Long Island and are set to close: