Big drugstore chain will close all stores
May 15,2025
Many of us remember them as Thrifty Payless,once a 1000 store chain in California. Now all that’s left of the name is on the ice cream cartons still for sale at your local Rite Aid – at least for a while.
Philadelphia-based Rite Aid Corporation announced this week that through its second bankruptcy in two years, the chain would shut down all of their 1200+ locations nationwide, including 347 here in California – all in the next few months.
Before their first bankruptcy in 2023 the drug store chain was ranked as the third largest in the nation, mostly clustered on both coasts.
As of May 5, the privately-held company said it would sell or close all of their stores through the Chapter 11 bankruptcy process.They also announced the company has secured commitments from existing lenders to access $1.94 billion in new financing. This financing, along with cash from operations, is expected to provide
sufficient funding during the sale and court-supervised process,they said in a statement.
The first time,in August 2023, Rite Aid announced that it was preparing to file for Chapter 11 bankruptcy protection in an effort to settle federal and state lawsuits over the company’s role in the opioid crisis.
Now Rite Aid will now work to sell its prescriptions to another drugstore or grocer who sells pharmacy drugs.
Other US large drugstore chains are CVS with the most retail locations in California, and Walgreens followed by an independent chain – Health Mart with 500 California locations and just two locally Cambria and Arroyo Grande, and then Rite Aid.
Ten SLO county Rite Aid locations
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In San Luis Obispo county, Rite Aid has the largest dispersed network of stores, including in smaller towns like Los Osos and Morro Bay. There are 10 locations in the county, the same number as CVS with only one location for Walgreens. All CVS locations are along the 101 corridor while Rite Aid sites include Morro Bay, Los Osos, 3 in Five Cities, 1 in Atascadero, 2 in San Luis Obispo and 2 in Paso Robles.
Managers tell us that the stores will stay open at least for a couple of months, but beyond that they have no idea if the store prescriptions will sell to another company or if the storefront will simply close after failing to sell.
Reportedly the consumer trend to purchase more drugstore items online is hurting all of the chains. For the past year consumers visiting Rite Aid have noticed more empty shelves as the company struggled to convince suppliers to send products. Liquor fills a number of the shelves.
For customers who don’t live in large cities, the uncertain fate of this nearby drugstore is worrisome, particularly for the elderly.For example the prescription list at one location could be sold to a drugstore miles away.
In Morro Bay where the town could be left with no chain drug store, independents are working to pick up the slack. Pill Save Pharmacy from Arroyo Grande recently opened in Morro Bay looking to offer low-cost medications for patients.
In Los Osos, Rexall Pharmacy and Ralph’s offer RXs as well.