Rite Aid's 2nd Bankruptcy: What It Means For CT Customers

CONNECTICUT — It's another round of financial concerns for the Rite Aid drug store chain and its Connecticut stores.

Rite Aid Monday filed for bankruptcy for the second time in less than two years after the previous restructuring reduced the pharmacy chain's debt but still left it on shaky financial footing.

The company listed liabilities in the range of $1 billion to $10 billion in a Chapter 11 petition filed in New Jersey bankruptcy court.

The Philadelphia-based drug store chain also announced it is seeking a buyer, and said that re-filing for Chapter 11 bankruptcy protection will speed up the process.

For now, Rite Aid plans to keep its stores open, the company said in a statement. However, in a brief address on Monday, Rite Aid CEO Matt Schroeder told employees that all stores would either be closed or sold, people familiar with the situation told Bloomberg.

Rite Aid said customers can continue to access pharmacy services and products in stores and online, including prescriptions and immunizations. In connection with the sale process and court-supervised proceedings, the company said it is working to facilitate a smooth transfer of customer prescriptions to other pharmacies.

Rite Aid's Connecticut roster includes:

• Wolcott
• Norwalk
• Stratford
• Milford
• Cheshire
• Ridgefield
• Naugatuck
• Brookfield
• Danbury

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

Rite Aid employees will continue to receive pay and benefits. But the company told employees it will cut jobs after failing to secure additional financing from its lenders, Bloomberg News reported, citing an internal letter from Schroeder.

Rite-Aid is the nation's third largest pharmacy chain behind CVS and Walgreens. All three have suffered financial difficulties and shuttered hundreds of stores in recent years.

Rite-Aid operated about 2,000 pharmacies as recently as 2023 but now has only about 1,240 stores as it enters its second bankruptcy.