Rite Aid Closes Locations Amid Bankruptcy Proceedings and Financial Struggles

CHESHIRE, Connecticut — Shoppers have just hours left to visit a Rite Aid store in Cheshire before it closes its doors for good. The struggling pharmacy chain recently announced it had filed for bankruptcy protection for the second time in less than two years, prompting a wave of store closures.

Three stores in Connecticut are on the chopping block, including the Cheshire location, which is slated to shut down Thursday. Nearby, the Danbury store closed on May 14, while the Naugatuck branch is expected to close its doors on May 19.

These closures come as Rite Aid reported liabilities between $1 billion and $10 billion in its recent bankruptcy filing. The process follows a failed corporate restructuring effort and a previous attempt to reduce debt in September 2024, which left the company on unstable footing.

Philadelphia-based Rite Aid is currently pursuing a buyer and has indicated that its Chapter 11 re-filing could hasten that process. Initially, Rite Aid planned to keep its stores operational, but this plan was reversed shortly thereafter.

Despite the closures, Rite Aid will still have a presence in Connecticut, with locations remaining open in Wolcott, Norwalk, Stratford, Milford, Ridgefield, and Brookfield. Once operating around 2,000 stores, Rite Aid now has roughly 1,240 as it enters this second bankruptcy round.

As the third-largest pharmacy chain in the United States, Rite Aid has been shrinking its operations alongside larger competitors in recent years due to ongoing financial challenges. Employees have been assured that their pay and benefits will continue, even though layoffs are on the horizon due to lenders withdrawing support.

Bankruptcy allows companies to eliminate unmanageable debts and access new credit. Under Chapter 11, businesses aim to restructure while still operating, unlike Chapter 7, which liquidates all assets. Bankruptcy experts had speculated for months that Rite Aid might have to close additional stores after struggling to keep shelves stocked.

Patients affected by the closing Rite Aid locations are being redirected to nearby pharmacies for prescription access. CVS Pharmacy confirmed that it has transferred customer files from the Cheshire Rite Aid to its location on 581 Highland Avenue.

Starting June 5, Rite Aid’s website will stop issuing rewards points, accepting gift cards, or processing returns and exchanges as part of its bankruptcy restructuring.

Walgreens has also announced its own round of store closures across 17 states, highlighting the ongoing challenges facing the retail pharmacy industry.