Rite Aid Files for Bankruptcy, Likely to Close Many Stores as Drugstore Chains Decline

Rite Aid, the third-largest U.S. drugstore chain, filed for Chapter 11 bankruptcy and is likely to close many of its 2,000 stores.

This continues the trend of declining neighborhood pharmacies as CVS and Walgreens also close stores, while big box and grocery chains open more pharmacies.

Rite Aid's bankruptcy is due to poor decisions, crushing debt from past acquisitions, and failed merger deals over the years.

All major drugstore chains have neglected their retail stores as they prioritized their health care businesses.

Rite Aid's shrinkage creates opportunities for its rivals CVS, Walgreens, grocery chains, etc. to gain more pharmacy sales.