by For the second time in less than a year, national pharmacy chain Rite Aid has filed for bankruptcy — a move that will impact hundreds of locations across New Jersey and Pennsylvania.
What You Need to Know
According to a new report from Bloomberg, Rite Aid was unable to secure new funding from its lenders, forcing the company to seek bankruptcy protection once again. Despite the financial restructuring, the company has stated it will keep stores open during the process and continue providing access to prescriptions, both in-store and online.
However, the bankruptcy filing will come with significant changes:
- Many stores will eventually close or be sold off.
- All distribution centers are expected to shut down.
- Significant job cuts are anticipated at Rite Aid’s corporate offices in Pennsylvania.
This marks a new low point for the struggling chain, which first filed Chapter 11 in October 2023. At that time, it closed over 800 stores and eliminated $2 billion in debt. Just 19 months later, it finds itself back in financial crisis.
Rite Aid’s Footprint in the Region
Rite Aid has a notable presence in our area:
- 61 stores in New Jersey, including locations in Bridgeton, Deptford, Jackson Township, Edison, and Clinton.
- Nearly 350 stores across Pennsylvania, with major concentrations in Philadelphia and Pittsburgh.
For comparison, CVS has around 800 locations in the two states combined, while Walgreens operates approximately 300.
Another Hit for Retail
Rite Aid’s situation adds to the growing list of once-popular chains that have struggled to survive in today’s competitive and rapidly evolving retail landscape. Just since Thanksgiving, several well-known retailers have downsized or shuttered completely:
- Party City has closed hundreds of locations, including 26 in New Jersey.
- Joann Fabrics is in the process of closing all stores nationwide.
- Macy’s is shutting down 66 stores, including locations in East Orange, NJ, and downtown Philadelphia.
- Kohl’s recently closed underperforming stores in East Windsor, NJ, and Pottstown, PA.
A Nostalgic Look Back
Rite Aid’s decline joins a long list of iconic stores that once defined shopping in the Northeast. From Jamesway and Bradlees, to Clover, Two Guys, and Circuit City, many beloved brands have disappeared from malls and main streets. Even Toys R Us and KB Toys, staples of childhood shopping trips, are now mostly memories.
As retail giants continue to shrink or disappear, the future of traditional shopping centers remains uncertain. For now, Rite Aid customers can still fill prescriptions and shop locally, but the long-term outlook for the brand is cloudy at best.
