Iconic retail chain winds down its remaining stores in bankruptcy

The U.S. drugstore retail sector is dealing with a vital transformation with huge pharmacy outlets downsizing operations to lower costs and a few filing for monetary misfortune.

The United States's largest drugstore chains have closed hundreds of store areas over the last four years to in the good aquire of labor costs, safe rid of above-market leases, jog leakage from theft, and shut down underperforming stores.

Among the nation's smaller pharmacy chains, dealing with same monetary hurt, were pressured to file for monetary misfortune safety to restructure debt.

Associated: Standard pizza and beer chain recordsdata for Chapter 11 monetary misfortune

Big drugstore chain Rite Back, nevertheless, filed for Chapter 11 monetary misfortune for the vital time on Oct. 15, 2023, and closed about 800 of its 2,100 stores in a reorganization.

The pharmacy chain's surviving entity, New Rite Back LLC, filed for Chapter 11 safety a 2nd time on May 5, 2025, and started closing all of its stores, estimated at about 1,240 areas at the time.

Rite Back recordsdata monetary misfortune thought to end the last of its stores

Rite Back is impending the tip of its existence because it filed its 14th thought of additional store closing areas with the U.S. Financial raze Court for the District of New Jersey on July 25, seeking approval to end 17 extra stores and liquidate their resources, which adds to previously designated areas for closing in its 2nd monetary misfortune, for a total of 1,237 stores.

The debtor has no longer indicated if any extra stores remain to be closed.

The retailer already filed its final location closing sigh on July 10.

Rite Back's 14th extra closing thought consists of store closures in 5 states, including Washington (11), New York (3), California (1) Oregon (1), and Pennsylvania (1).

Objections to the 14th closure thought are due by Aug. 4.

Rite Back closures by utter:

• California (348)
• Connecticut (15)
• Delaware (29)
• Idaho (7)
• Maryland (23)
• Massachusetts (4)
• New Hampshire (47)
• New Jersey (61)
• New York (178)
• Ohio (4)
• Oregon (36)
• Pennsylvania (352
• Vermont (5)
• Virginia (26)
• Washington (102)

Rite Back on July 21 filed its thirteenth thought of additional store closing areas, seeking to shutter one location in Colonial Heights, Va.

Objections to the thirteenth thought are due by July 31.

Rite Back already filed 14 notices of store closing areas with the distinctive thought and an additional closing thought on May 9, adopted by extra closing notices on May 15, May 23, May 30, June 6, June 13, June 20, June 27, July 3, July 11, July 18, and July 21.

Associated: Loved beer designate recordsdata Chapter 11 monetary misfortune

The first 14 teams of store closings listed 1,220 areas in 15 states, including Pennsylvania (351), California (347), New York (175), Washington (91), New Jersey (61), New Hampshire (47), Oregon (35) Delaware (29), Virginia (26), Maryland (23), Connecticut (15), Idaho (7), Vermont (5), Massachusetts (4), and Ohio (4).

One other vital drugstore chain, CVS, in 2021 started its downsizing campaign when it stated it would end 900 of its in terms of 9,900 stores to in the good aquire of costs and lower losses, closing 300 areas every 365 days in 2022, 2023, and 2024.

The firm prolonged the downsizing campaign into 2025, revealing in its annual file in February that it would end 271 extra stores this 365 days.

Walgreens, which operates about 8,600 stores, evaluated 2,000 stores for potential closure and acknowledged 1,200 areas to shutter over the following three years, with 500 residing to end in fiscal 365 days 2025.

Drugstore chain location closings:

• CVS: 1,171 store closings 2022-2025.
• Walgreens: 1,200 store closings 2025-2027.
• Rite Back: 2,037 store closings 2023-2025.

Closing stores would no longer be ample for loads of smaller drugstore chains that have opted for Chapter 11 monetary misfortune to reorganize their firms.

Smaller pharmacy monetary misfortune filings

Eastern Kentucky drugstore chain Rx Reduce designate Pharmacy, with about seven pharmacy and healthcare firms, on May 1, 2024, filed for Chapter 11 monetary misfortune reorganization.

CL Cressler Inc., the proprietor of seven Remedy Shoppe Pharmacy stores positioned in Pennsylvania and New York, on Aug. 29, 2024, filed for Chapter 11 monetary misfortune to reorganize its cash owed.

At last, in Arkansas, drugstore chain Doctor's Orders Pharmacy on July 21 filed for Chapter 11 monetary misfortune, as its parent Whitehall Pharmacy LLC faced a breach of contract lawsuit.