As Rite Aid liquidates during bankruptcy, customers get good news

For the first time in a few years, my son and visited Newington, Conn., the town we lived in for over a decade. Since we left, house prices have continued to rise and the population has climbed.

The town’s many strip malls appear nearly full, and even the nearby mall is thriving. There has been significant additional business growth with multiple plazas offering new-to-the-area national brands including Shake Shack, Cava, and Dave’s Fried Chicken.

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More Starbucks and Dunkin’ locations have popped up, which is impressive, given that there were a lot of those before we left. 

And while the overall area seems to be thriving, one thing was very notable. Multiple CVS and Walgreens had closed. Even though the area has more people and a rosy financial outlook, there were at least three vacant former pharmacies, and one in a prime location that had become a Dollar Tree.

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A few standalone locations remained in Newington and in nearby West Hartford, but it’s clear that most people are either having their pharmacy needs met online or at the CVS inside Target. That’s a massive change from just a few years before, when it seemed like there was a pharmacy (or two) every mile or so.

Rite-Aid was not a major player in that part of Connecticut, but as you move north toward New York, it becomes one of the big brands. That chain is, of course, closing all of its locations, but it did recently share some positive news with customers.

Rite Aid makes a deal  

When your local pharmacy closes down, the challenge becomes “where do I fill my prescriptions?” In some markets, the choices are bleak and having to find a store can be a challenge.

Online fulfillment is growing in popularity, but there’s a large portion of the population that does not want that. Rite Aid has made a move that should give its customers some peace of mind as their local pharmacy closes down. 

The dying chain has found new homes for some of the prescriptions it fills.

“Rite Aid Corporation has successfully entered into a series of sale agreements and pharmacy services transition agreements. This includes the rolling transition of pharmacy assets from more than 1,000 store locations across the U.S. to operators including CVS Pharmacy, Walgreens, Albertsons, Kroger, and Giant Eagle, among others, as well as the sale and operation by CVS Pharmacy of many Rite Aid and Bartell Drugs stores located in Washington, Oregon, and Idaho.”

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Rite Aid locations will remain open while these prescriptions are being transferred.

The sale transactions are subject to approval by the U.S. Bankruptcy Court for the District of New Jersey. The court is currently scheduled to conduct a hearing to approve the sales on May 21, 2025. Upon approval from the court, the sales will remain subject to certain regulatory notices and approvals, and other customary closing conditions.

Rite Aid tries to sell its assets

Rite Aid has been working to maximize the value of its assets so creditors can get paid at least a portion of what the chain owns. To begin that process, it filed for Chapter 11 bankruptcy protection.

It has tried to assure customers that it will work to ensure a continuity of service.

“During this process, Rite Aid 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 is working to facilitate a smooth transfer of customer prescriptions to other pharmacies. Rite Aid employees assisting with this process will continue to receive pay and benefits,” it shared in a press release.

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To support Rite Aid during its sale process, which it intends to conduct under section 363 of the U.S. Bankruptcy Code, the Company has secured commitments from certain of its existing lenders to access $1.94 billion in new financing. This financing, along with cash from operations, is expected to provide sufficient funding during the sale and court-supervised process.

“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. 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 CEO Matt Schroeder said.

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