SHOPPERS have just hours left to visit one Rite Aid location as it prepares to shut its doors for good amid a slew of closures.
The struggling chain announced last week that it filed for Chapter 11 bankruptcy protection for the second time in less than two years.
The bankruptcy filing has triggered a new round of store shutdowns.
Three Rite Aid stores in Connecticut are among the locations facing imminent closure.
A store in Cheshire, Connecticut closed Thursday.
Just down the road, the Danbury location closed on May 14.
Meanwhile, Rite Aid’s Naugatuck branch is scheduled to shutter its doors on May 19.
These Connecticut stores appeared as part of the bankruptcy proceedings after the company listed liabilities between $1 billion and $10 billion in its petition filed in New Jersey bankruptcy court.
The move follows a failed corporate reshuffle and an earlier restructuring in September 2024 that reduced debt but left Rite Aid on shaky footing.
Philadelphia‑based Rite Aid also announced it is seeking a buyer and said re‑filing for Chapter 11 will accelerate that process.
Rite Aid initially said it planned to keep its stores open, but that apparently changed a day later.
After the announced closures, Rite Aid will still maintain a presence in the state with locations in Wolcott, Norwalk, Stratford, Milford, Ridgefield, and Brookfield.
The chain operated about 2,000 pharmacies as recently as 2023 but now has roughly 1,240 stores as it enters its second bankruptcy.
As the nation’s third largest pharmacy chain behind CVS and Walgreens, Rite Aid has joined its larger rivals in shuttering hundreds of outlets in recent years amid financial turmoil.
Company representatives assured employees that pay and benefits will continue, even as jobs are cut due to lenders declining to provide additional financing.
Bloomberg News reported that an internal letter from the chain’s CEO Matt Schroeder informed staff of the impending layoffs.
How does bankruptcy work?
Bankruptcy is a specific legal process that helps companies eliminate debt they can't repay.
The process allows businesses to start fresh and gain access to new credit.
Supervised by federal courts, bankruptcies allow a company to sell off its assets more easily to pay off creditors, according to Investopedia.
Chapter 11, a common process for companies, is used to restructure a business with the goal of remaining open – even if it means selling off most of the company’s properties.
Chapter 7, on the other hand, sells all of a company’s assets, putting it out of business.
Chapter 15, alternatively, allows for collaboration between American and foreign courts to conduct bankruptcy proceedings with “parties of interest involving more than one country,” per the United States Courts.
Retail experts and consumers had speculated for months that Rite Aid would liquidate stores after struggling to keep shelves stocked with basic items like deodorants, mouthwash, shampoo, and toothpaste.
The bankruptcy filings do not spell out whether the company will cease all operations.
Meanwhile, patients at closing stores are being redirected to nearby pharmacies to maintain access to their prescriptions.
Customers of the Cheshire store had their files seamlessly transferred to the CVS Pharmacy at 581 Highland Ave., according to CVS spokeswoman Amy Thibault.
“All files (of the Rite Aid store at 180 Main St. in Cheshire) were transferred to the CVS Pharmacy at 581 Highland Ave.,” said Amy Thibault.
The Rite Aid website warns that it will no longer issue rewards points, accept gift cards, or process returns and exchanges starting June 5.
Here is a list of Rite Aid stores closing this month as a result of last week’s filing.
Meanwhile, Walgreens has also announced a slew of closures across 17 states.
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