Rite Aid has filed for bankruptcy protection for the second time in less than two years, announcing plans to sell substantially all of its assets while working to ensure a smooth transfer of customer prescriptions to other pharmacies, according to a company statement. Although the company reassures customers that pharmacy services will continue during this process, the reality of maintaining seamless access to prescriptions is likely to be far more challenging. Rite Aid’s situation exemplifies the broader financial pressures facing many large drugstore chains, with thousands of closures underway across the industry, exacerbating the growing problem of pharmacy deserts — areas where residents have limited or no access to pharmacies.
A 2024 study published in Health Affairs Scholar found that nationally, 15.8 million people, or 4.7% of the U.S. population, live in pharmacy deserts, affecting urban and rural communities across all 50 states. Pharmacies typically consist of the most accessible healthcare providers, but over the decade from 2011 to 2021, independent locations suffered the most from mass closures. Low-income and rural areas were particularly hard hit, with counties experiencing high poverty levels seeing a 34.3% net loss compared to a 28% decline in wealthier regions. Independent ones closed at nearly twice the rate of chain stores, with 38.9% shuttering during that period.
Questions arise about who will take over Rite Aid’s locations. Walgreens acquired 1,932 Rite Aid stores in 2017, but the landscape has shifted significantly since then. In October 2024, Walgreens announced plans to shutter 1,200 locations, aiming to close 500 by the end of its 2025 fiscal year. In March 2025, Walgreens Boots Alliance revealed private equity firm Sycamore Partners would acquire it. At that time, Walgreens operated more than 8,175 U.S. stores, most of which were leased rather than owned. A Trepp analysis suggests that Walgreens may accelerate store closures under new ownership, substantially shrinking its real estate footprint and affecting landlords with leases nearing expiration.
Recommended For You
Additionally, CVS Health has been reducing its store count, closing 900 locations between 2022 and 2024, representing about a tenth of its portfolio, while opening 100 new stores. In 2025, CVS announced plans to close an additional 270 stores. Whether CVS or Walgreens can absorb the Rite Aid locations remains uncertain, and there is no guarantee other operators will be able to either. Although major pharmacy sites are generally considered valuable retail properties, especially those with drive-through windows, the current wave of closures is far greater than anticipated. As Avison Young's Jon Hipp told GlobeSt.com at the time: “They have good real estate, but what if lenders don't want to refinance them? Can you get a lender to lend? Because perception is reality.” Lenders and landlords often lack clear insight into store sales, and selling properties with significant lease terms remaining may be difficult amid rising cap rates influenced by local market conditions.
Rite Aid’s second bankruptcy filing follows its emergence from Chapter 11 protection just eight months earlier, after a restructuring that reduced its debt by $2 billion but left operational challenges unresolved. CEO Matt Schroeder highlighted that the company’s financial difficulties have been intensified by rapidly changing retail and healthcare environments. Rite Aid currently operates about 1,240 stores across 15 states, down from roughly 2,000 in 2023, with recent closures notably reducing its presence in states like Ohio and Michigan. The company has secured $1.94 billion in new financing to keep stores open during the bankruptcy process and potential sale, but it also plans workforce reductions.
The growing number of pharmacy closures contributes to the expansion of pharmacy deserts, which now affect tens of millions of Americans. According to GoodRx data from 2025, 48.4 million people, about one in seven Americans, live in areas where filling a prescription requires a lengthy drive. Over the past five years, more than 1,300 pharmacies have closed, worsening access, particularly in rural and low-income communities. States such as Ohio, North Carolina, Oregon, Washington, Michigan, Pennsylvania and parts of California have seen significant increases in pharmacy deserts. Rural residents are disproportionately affected, with over half living in these types of settings, underscoring the widening gap in access to essential medications and healthcare services.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
