Rite Aid’s Future In Banning Is Uncertain: What To Know

BANNING, CA — Rite Aid customers in Banning may soon need to find a new place to shop or fill prescriptions, as their local store could permanently close or change hands.

The drugstore chain announced Monday it has filed for Chapter 11 bankruptcy again and plans to sell off inventory and other assets while shutting down its distribution centers.

The Banning Rite Aid is located at 806 Ramsey St.

While Rite Aid has been in business for more than six decades, customers may have noticed sparsely stocked stores over the last few years as the company has struggled to stay afloat between bankruptcy proceedings. The last time the company filed for Chapter 11 was in 2023.

“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," Matt Schroeder, CEO of Rite Aid, said in a statement.

Schroeder says the chain will prioritise a smooth transition for customers moving to other pharmacies.

"As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible," he said.

It's still unclear whether customers can expect their local Rite Aid to close for good, as the company says multiple buyers are interested. In the meantime, Rite Aid announced Monday that it has secured $2 billion to keep many locations open for the next few months, while others are sold or shut down permanently.

Neil Saunders, a managing director of GlobalData, told CNN that the chain has been "teetering on the edge of survival for quite some time."

Rite Aid has a massive presence in California, with 347 locations across the state.