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Rite Aid files for second bankruptcy in two years

  • Rite Aid announced plans to file for Chapter 11 bankruptcy again in 2025, aiming to sell most of its assets while keeping its stores operational.
  • The decision follows its initial bankruptcy in October 2023, after which Rite Aid restructured but still struggled with debt, inflation, and weaker demand.
  • After closing around 850 stores and cutting debt by $2 billion, Rite Aid emerged as a private company with reduced scale but ongoing financial strain.
  • Chief Executive Matthew Schroeder stated the company faces lenders unwilling to fund payroll fully and cited supplier payment restrictions, while Rite Aid secured $1.94 billion financing to support the sale.
  • This second bankruptcy signals Rite Aid's continued financial challenges amid a tough retail drugstore environment and plans for a sale and customer prescription transfers.
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The spokesman-Review broke the news in Spokane, United States on Monday, May 5, 2025.
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