63-year-old retail chain closes all of its stores permanently

The pharmacy industry has faced severe financial distress over the last two years, which has led several drugstore chains to close store locations and, in some cases, file for bankruptcy protection.

America's largest drugstore chains have closed 100s of store locations over the last four years to restructure their businesses and reduce labor costs, eliminate above-market leases, plug leakage from theft, and shut down underperforming stores.

Drugstore chain CVS in 2021 launched an out-of-court restructuring to close 900 of its nearly 9,900 stores to reduce costs and losses, cutting 300 locations each year in 2022, 2023, and 2024.

CVS, Walgreens launch restructurings

The company expanded its closures in 2025, revealing in its annual report in February that it would close 271 additional stores this year.

Another pharmacy chain, Walgreens, also launched an out-of-court restructuring and evaluated 2,000 of about 8,600 stores for potential closure.

The drugstore chain identified 1,200 locations to shutter over three years, with 500 set to close in fiscal year 2025.

Pharmacy chain store closings:

• Rite Aid, about 2,088, 2023-2025.
• CVS, about 1,171, 2021-2025.
• Walgreens, about 1,200, 2025-2027. 

In some cases, legal problems can force retail chains to file for bankruptcy protection.

CVS Health's long-term care pharmacy subsidiary Omnicare LLC and 110 affiliates filed for Chapter 11 bankruptcy protection on Sept. 22, seeking to resolve issues related to a recent $948.7 million U.S. Department of Justice civil judgment against the company.

All litigation against the debtor is subject to an automatic stay while the bankruptcy case proceeds.

The company said that it will either implement a standalone restructuring or seek a sale of its assets.

In other cases, the financial hardship is so severe, pharmacy chains have been forced out of business.

Rite Aid is no longer operating any stores

Bankrupt retail chain Rite Aid has closed all 1,288 of its remaining stores and transferred all customer prescriptions to other pharmacies, the company revealed on its website.

"All Rite Aid stores have now closed. We thank our loyal customers for their many years of support," the company wrote on its website.

Related: Major seafood company files for Chapter 11 bankruptcy

Rite Aid invited customers on the website to "Find Your New Pharmacy."

Rite Aid prescriptions transferred to other drugstores

The iconic drugstore chain asked customers: "Have you been notified that your prescription was transferred to a new pharmacy?"

The website also provided a process to retrieve patient records. Rite Aid allows patients to request records, such as prescription and immunization history, through its "Request Records" field.

Major pharmacies bought Rite Aid prescriptions

• CVS
• Walgreens
• Albertsons
• Kroger
• Giant Eagle

Rite Aid began selling its prescription files with the May 21, 2025, approval to sell files from 625 of its stores in 15 states to CVS. The company also sold 64 Rite Aid stores in Idaho, Oregon, and Washington to CVS.

In addition to selling files to CVS, the drugstore chain won approval to sell prescription files at other Rite Aid locations to Walgreens, Albertsons, Kroger, Giant Eagle, and other pharmacies.

More Bankruptcy:

• Beer brand and brewery files Chapter 11 bankruptcy
• Italian chain closed most restaurants in Chapter 11 bankruptcy
• Popular healthcare retail chain files for Chapter 11 bankruptcy

Rite Aid filed for Chapter 11 protection for a second time on May 5, 2025, U.S. Bankruptcy Court for the District of New Jersey and began closing all of its stores, which it estimated at the time to be about 1,240 locations.

The number of closed stores continued rising as the company filed notices of additional store closing locations

The debtor, which opened its first store in 1962, filed for Chapter 11 bankruptcy for the first time on Oct. 15, 2023, and closed about 800 of its 2,100 stores at the time.

Related: 34-year-old restaurant chain files for Chapter 11 bankruptcy