Rite Aid to Shutter All New York State Locations Amid Bankruptcy Filing

Following a new wave of financial restructuring efforts, Rite Aid is set to close all of its 178 stores across New York State beginning next month. The announcement was shared with employees in a letter from CEO Matthew Schroeder.

The closure news came on the same day the national pharmacy chain filed for Chapter 11 bankruptcy protection for the second time in two years. According to Reuters, Rite Aid estimates its assets and liabilities to be between $1 billion and $10 billion.

In his message to staff, Schroeder attributed the decision to a rapidly shifting healthcare and retail environment. He cited a range of financial pressures including a weakening economy, pending legal challenges, and increasing operational costs such as tariffs and rent, which forced the company to implement job cuts and abandon alternative recovery strategies it had been pursuing.

Rite Aid currently operates 73 pharmacies throughout Western New York. Last year, the company closed eight stores in that region alone.

Layoffs connected to the upcoming closures are scheduled to begin on June 4th.

While acknowledging the challenges the company has faced, Schroeder expressed appreciation for the continued efforts of Rite Aid’s employees and indicated that discussions with prospective buyers—both national and regional—are ongoing. He emphasized that maintaining uninterrupted pharmacy services and retaining as many employees as possible are top priorities as the company transitions through this restructuring phase.

Rite Aid to Shutter All New York State Locations Amid Bankruptcy Filing