Navigating Rite Aid’s Final Chapter: What Suppliers Need to Know

As Rite Aid winds down operations and prepares to close all stores by mid-July 2025, brand suppliers are grappling with what this means for distribution, volume shifts, and omnichannel strategy.

Says Shahlan Aldabagh, Vice President and Rite Aid Team Leader at MPG, “We’re watching this closely, of course. While the full picture isn’t known yet, it’s clear this will continue to create significant downstream impacts for suppliers.” Rite Aid’s second bankruptcy in two years marks the end of an era — and the start of a redistribution of volume across the competitive pharmacy landscape.

A Quick Recap: How We Got Here

Rite Aid first filed for Chapter 11 bankruptcy in October 2023, aiming to shed high debt, close underperforming stores, and reset operations. The company secured $3.5 billion in loans and sold its Elixir PBM business in early 2024 for $576.5 million. But financial pressures — from lawsuits to inventory shortages and rising costs — persisted. In May 2025, Rite Aid filed for bankruptcy again, citing unresolved challenges and diminishing liquidity. Yet, even as it restructured, the business experienced sub-optimal supplier support, and bare shelves meant less traffic and revenue.

Bidders Lining Up — Deadline of June 18

Rite Aid has worked hard over the past couple of months and since filing for its second bankruptcy to sell off its assets — including prescription files, stores, IP, and brands — CVS Health, Walgreens, Albertsons, Kroger, and Giant Eagle are snapping up store files and locations. CVS alone has agreed to acquire prescription files from 625 stores and will take over 64 physical locations in the Pacific Northwest including former Bartell stores.

Meanwhile, consumer brand management firms like Authentic Brands Group, WHP Global, and Marquee Brands are evaluating Rite Aid’s customer loyalty programs and intellectual property. Even Kourtney Kardashian is reportedly eyeing the nostalgic Thrifty ice cream brand, which still has strong regional resonance — and retail potential.

What’s Happening in Stores Now

Stores are still technically open — around 900 as of July 13 — but inventory has largely been frozen. No new stock is being shipped, loyalty points stopped accruing on May 6, and returns, exchanges, and gift cards were longer accepted after June 5. Customers may still be able to get prescriptions filled and receive immunizations for now as long as the medicine is available at store level. Markdowns are already rolling out and are likely to start qt 50% ND go as high as 90% during the final week before closure. Closure timing will vary by market, depending on how quickly each district can be shut down. An average of 150 stores are being closed now with the plan to have final store closing in mid-July.

Impacts and Insights for Brand Suppliers

While there’s still some uncertainty, Shahlan advises suppliers to:

Expect a Near-Term Volume Gap
With Rite Aid halting replenishment and phasing out stores, many suppliers will temporarily lose distribution volume. Identify which products were Rite Aid-heavy and model sales channel shifts accordingly.

Continue to Monitor Channel Shifts—Already in Motion Monitor which buyers are acquiring stores and Rx files in your key regions. CVS, Walgreens, and regional grocers are the primary absorbers — building or expanding those retailer partnerships will be critical through Q3 and Q4.

Loyalty Program Holds Strategic Value
Rite Aid’s loyalty program, with its rich customer data and behavioral insights, is a strategic asset in Rite Aid’s bankruptcy sale. For future owners—or marketers planning ahead—this program represents more than a legacy system; it offers a foundation for rebuilding customer relationships and crafting targeted engagement strategies that could yield long-term value.

Be Ready for a Fast-Moving Closeout Environment Consumers may flock to clearance deals in June and early July — and that can impact pricing dynamics or brand perceptions. Be prepared to adjust messaging, limit high-discount sell-through, or support remaining inventory tactically.

What Comes Next?

Rite Aid’s exit from the pharmacy channel is a stark signal: even legacy brands with regional strength aren’t immune to evolving consumer behavior, inflationary pressure, and digital transformation shortfalls. With CVS purchasing prescriptions of as many as 625 stores, the expectation is that they will see the benefit of Rite Aid store closure sooner than later.

“There’s still a lot to play out,” Shahlan says. “But we’re urging clients to treat this as a transformation moment — not just a loss of volume, but an opportunity to rethink their channel mix and build for what's next.”

Claim Processing Information

Information about the claims process is available at https://restructuring.ra.kroll.com/RiteAid2025, or by calling the Company’s claims agent, Kroll, toll-free at (888) 575-9318, or +1 (646) 930-4577 for calls originating outside of the U.S. or Canada, or by emailing Kroll at RiteAid2025Info@ra.kroll.com