Report: Rite Aid Contemplating Another Bankruptcy Filing

It was early September of 2024 when Rite Aid emerged from Chapter 11 Bankruptcy Protection and named Matt Schroeder as the company’s new chief executive officer.

Now, little more than seven months later, the drugstore chain is contemplating a re-run and may once again be filing for bankruptcy, according to a report in the Wall Street Journal.

According to The Journal, Rite Aid is considering selling some or all of its business as an alternative to filing Chapter 11. At the time of its first bankruptcy filing in October 2023, the company had more than 2,000 stores and 47,000 employees. Today, the retailer operates some 1,300 locations.

If a sale doesn’t happen, Rite Aid could close additional stores.

Through the drugstore chain's first bankruptcy process, Rite Aid eliminated approximately $2 billion of total debt. Additionally, the company has received approximately $2.5 billion in exit financing to support the business going forward.

Rite Aid also now operates as a private company with ownership held by many of its creditors.