Major Pharmacy Chain Will Close Its Remaining Stores In MA

MASSACHUSETTS — A popular pharmacy chain, albeit one with a shrinking presence locally, announced it would close or sell all remaining Bay State locations.

Rite Aid this week filed for bankruptcy for the second time in less than two years after a previous restructuring lessened the pharmacy chain's debt but still left it on unsound 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 drugstore chain also announced it is seeking a buyer, and said that re-filing for Chapter 11 bankruptcy protection will speed that process.

Rite Aid said most of its stores would remain open for a few months. All locations will eventually close or be sold to a new owner.

"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 acquirers," CEO Matt 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."

See Also: Longtime Retailer Quickly Closing All MA Locations

The company plans to sell customer prescription files, inventory and other assets as it closes distribution centers and unloads store locations. Stores will remain open for now, but the company isn't buying new inventory so bare shelves are likely to become more common.

Rite Aid has said that it will stop issuing customer rewards points for purchases. It also will no longer honor gift cards or accept returns or exchanges starting next month.

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 had been closing stores and struggling with losses for years before its first bankruptcy filing in 2023.

Rite Aid and its competitors have been dealing with tighter profits on their prescriptions, increased theft, court settlements over opioid prescriptions and customers who are drifting to online shopping and discount retailers. The company operated about 2,000 pharmacies as recently as 2023 but now has only about 1,240 stores as it enters its second bankruptcy.

For a full list of Rite Aid locations in Massachusetts, click here.

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