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Just seven months after wrapping up its previous restructuring, Rite Aid is once again filing for Chapter 11 bankruptcy.

The announcement came on Monday, with the company stating it is looking for a buyer and plans to sell most of its assets.

According to FoxBusiness, Rite Aid said the move is part of a "strategic and value-maximizing sale process."

The pharmacy chain has been struggling to stay afloat as competition from giants like Walgreens, CVS, Walmart, and Amazon continues to grow.

Rite Aid's CEO, Matt Schroeder, said in a statement, "While we have continued to face financial challenges, intensified by the rapidly evolving retail and healthcare landscapes... we are encouraged by meaningful interest from a number of potential national and regional strategic acquirors."

Despite the filing, the company says stores will remain open, and customers can still get prescriptions, immunizations, and other services both in stores and online.

Rite Aid also said employees will continue receiving pay and benefits while prescriptions are transferred if needed.

Rite Aid Closes Hundreds of Stores as Debt Crisis Deepens

Rite Aid has filed for Chapter 11 bankruptcy once again, marking its second filing since October 2023.

Back then, the company had nearly $4 billion in debt, partly due to lawsuits over its handling of opioid prescriptions.

The first restructuring helped cut about $2 billion in debt and led to the closure of around 500 stores.

But even after emerging from bankruptcy in September 2024, Rite Aid still had $2.5 billion in debt and a shrinking store count.

The company now operates around 1,250 locations, down from over 2,000 just two years ago. Markets like Ohio and Michigan have seen significant closures, CNN said.

According to retail analyst Neil Saunders of GlobalData, Rite Aid's second bankruptcy filing wasn't surprising.

"The first bankruptcy did little to resolve the chain's issues, and it has been teetering on the edge of survival for quite some time," he noted.

Saunders believes Rite Aid is now likely to sell individual stores to other retailers rather than continue as a national chain.

Rite Aid isn't alone in its struggles. Walgreens and CVS have also closed stores and laid off workers. Walgreens is going private in a $24 billion deal, while CVS is testing smaller, pharmacy-only stores.

Rite Aid has lined up nearly $2 billion in new financing to keep its stores running during bankruptcy proceedings. However, despite the funding boost, the long-term future of the company is still unclear.

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Bankruptcy