Indie Pharmacies Struggle, Shutting Stores Nationwide
Pharmacy chain Rite Aid declares bankruptcy; anticipating changes for its retail outlets
It's been a rocky road for independent pharmacies in 2025, with about one closing its doors every day, according to the National Community Pharmacists Association. And the struggles don't seem to be letting up anytime soon.
Take Rite Aid, for example. This pharmacy chain has seen more than its fair share of financial hardship and, sadly, may soon be adding to the closure count. Rite Aid has filed for bankruptcy not once, but twice in just two years, and the prognosis doesn't look particularly rosy this time around.
The company is expected to shutter 47 stores, with hundreds more potentially on the chopping block due to factors such as financial underperformance and lack of interest from potential buyers. In a complete about-face from 2023, when Rite Aid operated thousands of locations across the U.S., the debt-laden company is now significantly reducing its footprint as part of its turnaround strategy.
Rivals CVS and Walgreens have also tightened their belts, with closures becoming a common sight in the industry as it rightsizes itself. George Hill, managing director and senior equity research analyst at Deutsche Bank, notes that the industry's rapid growth in the pharmacy space didn't necessarily make a whole lot of sense, with the industry seemingly expanding its footprint and locations faster than the need for pharmacies was growing.
This could spell trouble for Rite Aid, as a prolonged sales process could potentially be the company's downfall. Sarah Foss, head of legal at Debtwire, points out that the value of Rite Aid's assets can deteriorate quickly if customers opt to shop elsewhere during the sale process. Fortunately, Rite Aid has reportedly received substantial interest from potential buyers, which Foss suggests is key to the company's survival.
The sale process itself is set to move at a breakneck pace, with auctions slated for May 14 for the pharmacy assets and June 20 for the rest of Rite Aid's assets. Approval by the bankruptcy court for the sales is expected to follow closely thereafter.
Rite Aid isn't alone in its plight: the company marks the 14th to file for Chapter 11 for a second time since the beginning of 2024, with its financial struggles stemming from significant debt issues, inventory shortages, and a suboptimal lease portfolio, ultimately leading to liquidity problems[1][2]. These challenges have made it difficult for Rite Aid to restock high-margin front-end products, consequently reducing sales[1].
As the industry evolves, it remains to be seen which pharmacy chains will weather this storm and continue to serve customers across the nation. One thing is for certain, though: independent pharmacies are facing an uphill battle, and only time will tell how many of them will be able to rise to the challenge.
[1] Retrieved from https://www.fbcpulse.com/factchecks/rite-aid-store-closures/[2] Retrieved from https://www.pharmacytimes.com/news/rite-aid-filing-for-chapter-11-bankruptcy-for-second-time[3] Retrieved from https://www. américaneconomy.com/rite-aid-files-for-bankruptcy-a-second-time-in-less-than-two-years/
- The debt-laden company, Rite Aid, is expected to shutter 47 stores, with hundreds more potentially on the chopping block due to financial underperformance and lack of interest from potential buyers, added to the rocky road it has faced in 2025.
- Rite Aid's reported significant debt issues, inventory shortages, and a suboptimal lease portfolio have led to liquidity problems, and reduced sales of high-margin front-end products.
- In the pharmacy industry, businesses like Rite Aid, CVS, and Walgreens have tightened their belts, with closures becoming a common sight as they rightsize themselves following the rapid growth that seemingly expanded the industry's footprint faster than the need for pharmacies was growing.
- Sarah Foss, head of legal at Debtwire, pointed out that the value of Rite Aid's assets could deteriorate quickly if customers opt to shop elsewhere during the sale process, potentially marking the company's downfall.
- Independent pharmacies are facing an uphill battle, as the sector evolves, with only time to tell how many of them will be able to rise to the challenge, and continue to serve customers across the nation.
