The pharmaceutical company Rite Aid may file for bankruptcy for the second time, after facing economic difficulties. Less than a year ago, it had managed to emerge from bankruptcy after filing for Chapter 11 of the U.S. Bankruptcy Code in October 2023.
Why could Rite Aid file for bankruptcy?
Since 2023, the company had already been reporting financial problems, but filing for Chapter 11 helped it emerge from bankruptcy. However, the pharmacy chain continued to face several difficulties that have prevented it from fully recovering.
One of these challenges was the lawsuit filed against it by the U.S. Department of Justice, due to violations of the False Claims Act and the Controlled Substances Act, after dispensing prescriptions without a legitimate medical purpose, which led to the company being forced to pay a multi-million dollar settlement.
In addition, in 2024, the company was the victim of a massive data breach, which revealed personal information of 2.2 million customers, who subsequently filed a class-action lawsuit against it. As a result, Rite Aid had to pay $6.8 million.
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Will Rite Aid pharmacies close?
So far, the company has not disclosed whether it will actually file for bankruptcy or seek another solution. However, one of the alternatives it is considering is seeking a buyer to maintain part or all of its pharmacies.
How many Rite Aid pharmacies are there in the United States?
Until 2008, the chain had more than 5,000 pharmacies in the country; however, by 2023, this number had decreased to 2,000, and after its bankruptcy filing that same year, it currently operates around 1,300.
History of Rite Aid
The pharmacy chain was founded in 1962 in Scranton, Pennsylvania, under the name Thrif D Discount Center. In 1968, its name was officially changed to Rite Aid Corporation, and one year later, it became the third-largest retail pharmacy chain in the United States.
By 1996, the company expanded to the West Coast and the Gulf Coast region through the acquisitions of Thrifty PayLess Holdings, Inc., Harco, Inc., and K & B Inc., adding more than 1,000 stores. In 2014, it acquired Health Dialog, which offers personalized health advice and disease management services through phone and live online health services.
In 2015, it expanded its portfolio with the acquisition of EnvisionRx (now Elixir), a full-service pharmacy benefit management (PBM) company. The company continued expanding its presence with the acquisition of Bartell Drugs in Washington, where it opened 67 stores in 2020.
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During the COVID-19 pandemic in 2021, the company began administering global vaccines at all of its locations. Later, Rite Aid moved its headquarters from Camp Hill to the Navy Yard district of Philadelphia and, in 2024, completed the sale of its Elixir Solutions business to MedImpact Healthcare Systems, Inc.
What is Rite Aid Rewards?
Rite Aid Rewards is a point-based loyalty program that allows customers to earn points with eligible purchases in physical stores, online, and through the mobile app. Customers can also earn points for picking up prescriptions, getting vaccines, and more. They can redeem their points for BonusCash to get a discount on a future purchase. Signing up for the program is free and gives you the following benefits:
- Earn points that convert to BonusCash with just 1,000 points.
- Exclusive offers and promotions for members.
- Instant BonusCash promotions and prices exclusive to members.
- New personalized offers and fun challenges based on the brands you love, according to your purchases.
- Rite Aid Rewards 65+ for customers aged 65 and over now gives 5X points on the first Wednesday of each month, plus points on all other days of the year.
- Exclusive digital coupons for members, redeemable in-store and online.
- Opportunity to participate in the KidsCents collection program.
Points are valid for 90 days from the date they are deposited, and the amount earned depends on what you purchase:
- 10 points for every $1 spent on qualified frontline products (in-store or online).
- 10 points for every $1 spent on co-pays for government-funded prescriptions.
- 250 points for every 30-day or shorter prescription refill.
- 250 points for every eligible vaccine administered in a pharmacy within a store.
- 750 points for every 31-day or longer prescription refill.
