The news: Beleaguered drugstore chain Rite Aid has filed for bankruptcy for the second time in less than two years. This week’s filing comes only months after the company emerged from its previous bankruptcy and includes plans to sell all its assets.
How we go here: Rite Aid filed for Chapter 11 bankruptcy in October 2023 after racking up billions in debt. It was dealing with headwinds faced by the broader drugstore sector, such as lower reimbursement from pharmacy benefit managers (PBMs) and declining front-of-store sales due to consumers turning to online sellers like Amazon for everyday items. The company was also facing pressures from lawsuits over allegedly filling an overabundance of opioid prescriptions.
What now? Rite Aid currently operates about 1,250 stores, down from about 2,300 just two years ago. The company said it will close its open stores if a buyer doesn’t emerge. Another option could be for an acquirer to purchase some locations, but most Rite Aid stores would still close in that scenario.
- Access to pharmacies will worsen as a result, particularly in the tri-state area where Rite Aid is most prevalent.
- Over 48 million Americans, or about 1 in 7 people, live in a pharmacy desert, according to new research from GoodRx.
- 59% of consumers say they’re concerned about getting medications close to home as major pharmacy chains close, according to a survey last year from Wolters Kluwer Health.