Rite Aid has filed for bankruptcy for the second time in under two years as it seeks a buyer.
The company said in an announcement that filing for Chapter 11 bankruptcy protection will help to enable that sale. Rite Aid also said that it has secured $1.94 billion in financing to facilitate the process.
Rite Aid said that this additional funding as well as cash earned from operations will be enough to keep the company afloat during the sale and court-supervised process. It plans to sell off any assets that are not divested during the court proceedings, according to the announcement.
Customers can continue to access pharmacy services through Rite Aid during the sale process. As things move forward, the company is planning to establish a "smooth transfer" of prescriptions to other pharmacies.
Rite Aid CEO Matt Schroeder said in the press release that the company is "encouraged by meaningful interest from a number of potential national and regional strategic acquirors."
"As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible," he said.
The company said in the announcement that Rite Aid employees who are involved in shifting prescriptions to other pharmacies will continue to receive pay and benefits.
"I will be forever grateful to our thousands of associates for their commitment to Rite Aid and its mission, and I thank our entire team—from store associates to corporate employees—for their dedication to our customers and our company," Schroeder said. "With their support, we have played a critical role in supporting the healthcare needs of countless Americans across the communities that we are honored to serve."
The company previously filed for Chapter 11 bankruptcy protection in October 2023. At the time, Rite Aid was facing a rising debt load as it managed payouts from litigation over its role in the opioid epidemic.
Rite Aid emerged from bankruptcy in September 2024 after it slashed its debts by about $2 billion. Schroeder also stepped into the role of CEO at that time.