Daw Drug Co.

Rite Aid Corporation

File:Rite Aid logo.svg Rite Aid logo used from 1979 to 2020
Company type	Public
Industry	Pharmacy retail
Founded	September 1, 1962 (1962-09-01) in Scranton, Pennsylvania, U.S.
Founder	Alex Grass
Fate	Filed for Chapter 11 bankruptcy in October 2023 and May 2025; downsizing store footprint nationwide
Headquarters	Philadelphia, Pennsylvania , United States
Area served	15 states across the United States, mainly East and West coasts
Key people	Timothy J. Noonan (CEO as of 1999)
Products	Pharmacy retail services
Website	www.riteaid.com

Rite Aid Corporation Overview

Rite Aid Corporation is a prominent American pharmacy chain headquartered in Philadelphia, Pennsylvania. Established in 1962 in Scranton, Pennsylvania by Alex Grass, it initially operated under the name Thrift D Discount Center. Before its initial bankruptcy filing in 2023, Rite Aid ranked as the third-largest drugstore chain across the United States. The enterprise operated over 1,200 locations spanning 15 states, mainly concentrated along the East and West coasts.

Following a period of expansion, the company rebranded to its current name and went public in 1968. Rite Aid was listed on the New York Stock Exchange under the ticker symbol RAD and held the No. 148 position on the Fortune 500 list in 2022. The corporation filed for Chapter 11 bankruptcy twice—first in October 2023 and again in May 2025—primarily due to significant debt obligations, numerous lawsuits linked to the opioid epidemic, and unsuccessful restructuring efforts. Since then, Rite Aid has been rapidly downsizing its store footprint nationwide.

1962–1989

Rite Aid logo used from 1979 to 2020

The Rite Aid retail pharmacy chain was established in September 1962 by Alex Grass in Scranton, Pennsylvania. This venture followed Grass’s marriage into the Lehrman family of Harrisburg, Pennsylvania during the early 1950s. Initially, the business operated under the name Thrift D Discount Center. By 1965, Rite Aid had expanded its presence to five additional states and subsequently went public under its current name in 1968. The company listed on the New York Stock Exchange two years later, in 1970.

A decade after opening its first location, Rite Aid had grown to encompass 267 stores across ten states. In June 1981, members of Teamsters Local 182 initiated a strike focused on paid vacation benefits. The union accused Rite Aid of imposing a lockout. This labor dispute persisted for ten months until a scheduled National Labor Relations Board hearing on July 19, 1982. Sales reached $1 billion in 1983. That year also saw Rite Aid expand beyond 2,000 outlets following the acquisition of 420 stores along the East Coast.Template:Fix/category

In early October 1984, Rite Aid acquired the Federal Plaza building in downtown Youngstown, previously occupied by Woolworth. Late that same month marked Rite Aid's entry into Michigan through multiple acquisitions including Grand Rapids-based Muir Drug and Remes Drug, as well as Lippert Pharmacy of Lowell and Herrlich Drug from Flint. The following year, stores were launched in Lansing, Michigan through the purchase of State Vitamin. Expansion into Ohio occurred in 1987 with the acquisition of Cleveland-based Gray Drug from Sherwin Williams. Among other acquisitions was Baltimore's Read's Drug Store.Template:Fix/category

In March 1988, Rite Aid purchased Begley Drug Stores based in Richmond, Kentucky, which included six home health centers throughout Kentucky and approximately 140 dry cleaning outlets across ten states. By June 1988, liquor licenses previously held by Gray Drug were transferred to Rite Aid following regulatory approval by the Ohio Division of Liquor Control. On April 10, 1989, Rite Aid acquired Lane Drug Co., a 114-store chain operating primarily in Ohio under Peoples Drug. Later that year in November, the United Food and Commercial Workers reported that Rite Aid reduced employee working hours at its stores subsequent to the Lane Drug acquisition.

1990–1999

Throughout the 1990s, Rite Aid collaborated with Carl Paladino's Ellicott Development Co. to broaden its footprint in upstate New York. In 1992, the company acquired Wellby Super Drug from Hannaford Brothers. That same year in June, Rite Aid criticized Maine's prescription drug program managed by Medco Containment Services. By January 1994, CEO Martin Grass revealed plans to shutter 200 drugstores within a six-month period, concurrently divesting the firm's auto parts, book, and dry cleaning divisions. Nonetheless, Rite Aid aimed to inaugurate seventy-five new outlets by February 1995.

In May 1994, as part of its Northern New England growth strategy, Rite Aid purchased LaVerdiere's. Later that year, the company took over twenty-four stores from Hook's Drug Stores, subsequently selling nine of these to Michigan’s pharmacy chain Perry Drug Stores. By December 1994, Rite Aid announced its acquisition of Perry, marking its initial entry into the Metro Detroit market and further strengthening its Michigan presence. In February 1995, Revco assumed control of Rite Aid’s Braddock Avenue location in Pittsburgh. The following month, Alex Grass stepped down as chairman and CEO, with his son Martin Grass succeeding him.

July 1995 saw Rite Aid extend into Portland, Maine by acquiring eighteen stores from Brooks Pharmacy, while Brooks purchased thirty stores in Massachusetts and Rhode Island from Rite Aid and also obtained prescription files from six additional Massachusetts locations. In October 1995, Rite Aid announced plans for a new store in Hampden, Maine, where Downeast Pharmacy had been serving approximately 6,000 residents. The next month, a $1.8 billion cash and stock merger proposal with Revco was announced; however, the Federal Trade Commission (FTC) threatened an antitrust lawsuit that ultimately led to the deal's collapse. Although Revco’s executives opposed the sale to Rite Aid, shareholders supported it. Eventually, CVS Health acquired Revco in 1997.

Following the 1994 acquisition of LaVerdiere's, the FTC mandated in February 1996 that three stores be divested. In April of that year, Rite Aid purchased Honeyland Pharmacy located in Schenectady, New York. By June 1996, the company was entering the second year of a planned three-year expansion. In September 1996, Rite Aid representatives engaged with residents of Orono, Maine to address concerns about constructing a larger store.

On October 14, 1996, Rite Aid acquired the West Coast chain Thrifty PayLess, which included the Northwest-based membership discount stores Bi-Mart. The following day, Rite Aid announced plans to sell Bi-Mart; this sale was completed in 1997. During August 1996, the company intended to open new outlets in Madawaska and Fort Kent while expanding existing stores in Houlton and Caribou within Aroostook County.

In early 1997, discussions took place between Rite Aid and then-Maine Governor Angus King regarding liquor licenses amid legislative concerns tied to state liquor store closures initiated two years earlier and associated job losses. March of that year brought news of a planned distribution center in Harford County, Maryland, expected to create approximately 850 jobs. July saw Rite Aid acquire Harco, Inc., and K&B, Inc., thereby entering the Gulf Coast market.

At the start of 1998, plans for a new store in Bucksport were postponed. Mid-January announcements revealed layoffs affecting around 200 employees at the New Orleans distribution center; concurrently, expansion of a customer service center in Tuscaloosa, Alabama resulted in creating an additional 100 jobs. February brought considerations for relocating the Hampden store adjacent to Hampden Academy.

By mid-April 1998, Rite Aid entered an agreement with National City Bank to sublease and operate a branch inside its Pittsburgh store on Penn Avenue. Later that month, the downtown Youngstown location at Amedia Plaza was closed. Early May plans for a Guilford store were delayed due to concerns over lack of company engagement during discussions.

In late May 1998, HIV/AIDS activists picketed several Philadelphia-area stores alleging inadequate stock of HIV medications caused customers to face wait times of two to three weeks. June witnessed community meetings in Blue Hill regarding a new Rite Aid store; despite questions raised by residents, city planners approved construction.

Residents of Bucksport remained wary in early July about replacing two smaller stores with a superstore model. Shortly thereafter, Bangor held a public hearing on a proposed new store following rezoning approval; however, the city council referred the issue back to planners. Late July involved rebuilding a Tuscaloosa store previously occupied by Woolworth's and Harco that had been destroyed by fire in November 1997.

In September 1998, Rite Aid announced plans for an 11,000-square-foot replacement store in Washington, Pennsylvania; however, tenant issues complicated relocation efforts. Later that month Bucksport planning board denied permits for a superstore construction; Rite Aid considered appealing this decision. By August delays persisted on Bucksport's new store amid ongoing local apprehension.

November brought news that rising costs compelled Rite Aid to abandon plans for a Bangor store. Similarly in December 1998, plans were scrapped for opening a new outlet in Five Mile Fork, Virginia. Throughout 1999 approximately 600 underperforming stores were closed.

In May 1999, Rite Aid purchased a Gulf gas station located at Forbes and Murray avenues within Pittsburgh’s Squirrel Hill neighborhood for $2 million and intended to develop a new store there despite parking challenges. By September that year, plans were underway to phase out the Farr West distribution center in Utah with operations moving to Los Angeles.

On October 19, Martin Grass resigned as chairman and CEO amid mounting debt linked to rapid expansion; Timothy J. Noonan—then president and COO—was appointed CEO while an executive committee composed of four outside directors was established by the board. Although shares briefly surged to $30 per share on October 20 before plummeting again to $4.40 per share shortly thereafter.

Shareholders expressed frustration over stock declines from $50 per share earlier that year down to $9.56 per share later on; Douglas Wilburne remarked that some investors sought "a little catharsis." Leonard Green assumed chairmanship in November.

Early December marked Bob Miller’s appointment as chairman and CEO; his leadership helped stabilize Rite Aid and steer it away from bankruptcy after three decades at Albertson's and Kroger. Following KPMG LLP’s resignation as auditor in November, Deloitte & Touche was engaged by Rite Aid. Leonard Green & Partners selected Mary Sammons from Fred Meyer as president and COO; David Jessick—a former executive at Thrifty Payless and Fred Meyer—became Chief Administrative Officer while John T. Standley from Fred Meyer took on Chief Financial Officer duties.

2000–2009

In April 2000, Rite Aid announced it had obtained a $1 billion credit facility from Citibank, alongside J.P. Morgan converting $200 million of bank debt into Rite Aid shares priced at $5.50 each. Additionally, Rite Aid declared its intention to withdraw PCS Health Systems, Inc., a pharmacy benefit manager (PBM), from the sale market. By mid-July 2000, the company completed the sale of PCS Health Systems to Advance Paradigm for $1 billion. Entering 2001, although Rite Aid failed to meet Wall Street expectations, its sales figures were rising and earnings displayed positive momentum, with improved EBITDA results.

In July 2001, Rite Aid committed to enhancing its pharmacy complaint handling by launching a new consumer response program. Later that year, in December, the company divested its stores in the Columbus, Ohio area to CVS. The closure of a neighborhood store in Pittsburgh in April 2003 sparked discontent among the Pittsburgh City Council and local residents. By late April 2003, Rite Aid reported modest quarterly gains and successfully reduced its debt from $6.6 billion in 2000 to $3.9 billion.

July 2004 marked Rite Aid's first expansion since its near-collapse in 1999, coinciding with the sale of 1,260 Eckard stores to CVS. Leadership changes occurred in 2003 when Sammons assumed the CEO role.

An Eckerd location in Rochester, Pennsylvania, photographed shortly before its conversion to a Rite Aid store in August 2007

In January 2006, Rite Aid proposed expanding its store in Beaver, Pennsylvania, though zoning challenges arose concerning the loading dock area. By March of that year, local residents opposed plans for constructing a new Rite Aid store in Beaver.

On August 23, 2006, The Wall Street Journal reported that Rite Aid intended to acquire the U.S. operations of Quebec-based Jean Coutu Group, including 1,858 stores under the Eckerd Pharmacy and Brooks Pharmacy brands. The transaction was valued at approximately $3.4 billion in cash plus stock issuance, granting Jean Coutu a 32% ownership stake in Rite Aid. Shareholders voted on this acquisition in January 2007 and overwhelmingly approved it on January 18. The Federal Trade Commission (FTC) granted approval on June 2, and the acquisition was finalized on June 4 of that year.

Following antitrust scrutiny, Rite Aid was required to divest 23 stores. Subsequently, the acquired chains were rebranded under the Rite Aid name by September 2007, retiring the century-old Eckerd brand; however, the subsidiaries continued to exist nominally for operational purposes. This merger positioned Rite Aid as the leading drugstore chain in the Eastern United States and third largest nationwide. At its peak in 2008, Rite Aid operated 5,059 locations with a workforce numbering approximately 112,800 employees.

The subsequent fiscal quarter after the merger saw revenue growth but a significant decline in net income as integration efforts began; The New York Times reported record losses during that period. From September 2007 to September 2008, Rite Aid's stock price plummeted over 75%, closing at $0.98 on September 11, 2008 and further declining to $0.20 by March 6, 2009.

In February 2007, the city council of Bryan, Ohio granted approval for an 11,000 square-foot pharmacy construction by Rite Aid.

Much like CVS’s experience following its acquisition of Albertsons’ drugstore chains within the Chicago metropolitan area, this deal resulted in overlapping Rite Aid locations—particularly evident in Pennsylvania where both chains had strong regional presence (Rite Aid originated in Scranton; Eckerd began operations in Erie, while Thrift Drug was well-known around Pittsburgh). Some neighborhoods featured adjacent Rite Aid stores due to this overlap. In March 2008, several redundant outlets were closed; most closures involved pre-existing Rite Aids predating the Eckerd acquisition since Eckerd had developed newer stores equipped with drive-through pharmacies and larger footprints under ownership by both JCPenney and later Jean Coutu Group. Employees from shuttered locations were reassigned nearby.

As a former JCPenney subsidiary, Eckerd accepted JCPenney’s store credit card—a practice continued by Rite Aid post-merger. Many Brooks Eckerd stores acquired had originally been Rite Aid outlets before being sold to JCPenney’s Thrift Drug chain during the mid-1990s (shortly before JCPenney acquired Eckerd), and all Massachusetts stores were sold to Brooks in 1995. After merging with Brooks Pharmacy and Eckerd Pharmacy chains, Rite Aid became the third-largest retail drugstore chain nationally.

On January 4, 2008, Rite Aid announced plans to close all 28 stores within the Las Vegas Valley, transferring patient prescription records to Walgreens. The company cited Las Vegas as a non-core market that had not contributed positively and noted no new openings there since 1999. One remaining Nevada outlet persisted in Gardnerville, near California’s border where over 600 stores operated at that time. This final Nevada location closed in December 2023.

On February 5, 2009, Rite Aid declared it would cease operations at seven San Francisco stores along with five locations in eastern Idaho through sales to Walgreens.

Founder Alexander Grass passed away from cancer on August 27, 2009.

2010–2019

In June 2010, John Standley advanced from his role as chief operating officer to become chief executive officer, while former CEO Mary Sammons continued serving as chairperson. Ken Martindale, who had been co-president at Pathmark, was appointed chief operating officer. By April 2013, Jean Coutu divested 72.5 million shares of Rite Aid back to the company, and by July of the same year, it sold off its remaining stake.

Interior of a Rite Aid store in San Ramon, California, in March 2017

In February 2015, Rite Aid expanded into the pharmacy benefits management sector by acquiring EnvisionRx, which includes subsidiaries such as MedTrak, Connect Health Solutions, and Smith Premier Services.

On October 27, 2015, Walgreens Boots Alliance declared its intention to acquire Rite Aid for $9.4 billion, subject to shareholder and regulatory consent. This merger would have created the largest pharmacy chain in the U.S., controlling an estimated 46% market share. Walgreens indicated plans to retain the Rite Aid brand for existing locations if the acquisition proceeded; however, its long-term strategy regarding the Rite Aid name remained unclear.

Industry experts anticipated the merger’s completion by late 2016, though regulatory scrutiny caused initial delays. To address antitrust concerns, on December 21, 2016, Rite Aid agreed to sell 865 stores to Fred's for $950 million. Nevertheless, the Federal Trade Commission (FTC) sought further divestitures of an additional 650 stores. In January 2017, both companies postponed the merger’s closing until July and lowered the transaction price to around $6.8 billion. The labor union representing approximately 6,000 Rite Aid workers, 1199SEIU United Healthcare Workers East, publicly opposed the deal at that time.

Rite Aid store in Rose Hill, Fairfax County, Virginia in September 2018, before conversion to a Walgreens

On June 29, 2017, Walgreens announced it was terminating the merger agreement and instead proposed purchasing 2,186 Rite Aid stores—less than half of the chain—for $5.18 billion plus a $325 million termination fee. This arrangement effectively signaled Rite Aid’s exit from much of the southeastern U.S. Subsequent negotiations resulted in a revised agreement for Walgreens to acquire 1,932 stores for $4.38 billion, which received FTC approval on September 19. The transaction closed on March 27, 2018, leaving Rite Aid with about 2,600 locations. Beginning September 1, three distribution centers and associated inventory were transferred; most acquired stores were rebranded as Walgreens. Approximately 600 stores were shuttered—primarily those within close proximity to existing Walgreens outlets.

On February 20, 2018, Albertsons announced plans for a merger with Rite Aid structured as a merger of equals pending shareholder and regulatory approval. However, on August 8 that year, Rite Aid disclosed that shareholder dissatisfaction led to cancellation of the proposed acquisition.

In June 2019, Rite Aid shuttered its final store in Bangor, Maine.

2020–2025

In October 2020, Rite Aid declared its plan to purchase Bartell Drugs, a privately owned pharmacy chain operating 67 stores in the Seattle region, for $95 million. Some customers expressed dissatisfaction following the acquisition, citing issues such as significant employee turnover and problems with computer systems.

By 2022, Rite Aid shifted its corporate headquarters from Camp Hill, Pennsylvania to Philadelphia. During the fiscal year 2022, Pennsylvania led with 494 Rite Aid outlets, making it the state with the highest store count, followed by California with 487 locations and New York with 281 stores.

On October 4, 2023, Rite Aid received notice of a potential removal from the New York Stock Exchange. Subsequently, on October 16, 2023, formal proceedings began to delist Rite Aid from the NYSE.

Initial Bankruptcy

On August 25, 2023, Rite Aid disclosed its intention to initiate Chapter 11 bankruptcy proceedings within the upcoming weeks. This move aimed to resolve numerous federal and state lawsuits linked to the company's involvement in the opioid epidemic. The restructuring plan included the possible shutdown of as many as 500 poorly performing stores across the United States. By October 2023, CreditRiskMonitor indicated that Rite Aid was approaching a likely bankruptcy filing.

Subsequently, on October 15, 2023, facing multiple opioid-related legal challenges, Rite Aid and several affiliated debtors officially filed for Chapter 11 protection in the United States District Court for the District of New Jersey. The following day, the company was removed from the New York Stock Exchange and began trading on over-the-counter markets. Rite Aid announced it had secured $3.5 billion in financing and debt restructuring agreements from lenders to sustain operations during bankruptcy. Approximately 500 stores were closed throughout the remainder of 2023. On October 16, an additional 92 stores were slated for closure or sale to other pharmacy chains.

By October 18, Rite Aid cautioned investors about significant risks to its survival, warning it might need to permanently close or sell all remaining locations within a year. That same day, the company declared the closure of 154 more stores, with its stock price plummeting to an all-time low of $0.13 per share.

According to bankruptcy documents, Rite Aid's acquisitions from 2007—The Jean Coutu Group (PJC) USA Inc., formerly Jean Coutu's U.S. subsidiary, and Eckerd Corporation—remain active only in name as subsidiaries despite prior conversions to Rite Aid and PJC’s divestment of its shares a decade earlier.

On October 19, competitor Walgreens agreed to a $192.5 million settlement resolving claims from Rite Aid investors who alleged that Walgreens executives misrepresented their acquisition bid for Rite Aid back in 2017.

On November 16, Rite Aid filed suit against the United States Department of Justice, seeking to halt an opioid lawsuit accusing the company of disregarding warnings and improperly filing thousands of prescriptions for addictive opioids. Five days later, a bankruptcy judge mandated that Rite Aid complete its reorganization by March 1, 2024; failure to do so could result in liquidation. On November 29, Rite Aid announced plans to close an additional 30 stores by December's end. Shortly thereafter, on December 5, the company revealed intentions to sell 79 more locations.

On December 19, Rite Aid consented to court-supervised bankruptcy mediation involving opioid victims and creditors and obtained approval for a loan expected to provide around $200 million in funding. That same day, the company settled with the Federal Trade Commission regarding its AI-driven facial recognition technology; under the agreement, Rite Aid agreed not to use facial recognition in any store for five years after allegations surfaced that it misused the system by wrongly identifying customers based on race and ethnicity. Initially, this technology was intended to detect shoppers potentially involved in criminal activity. Additionally, Rite Aid announced plans to close another 19 stores nationwide.

On December 21, after no higher bids emerged during an auction process, Rite Aid withdrew its Elixir division sale auction and sold this insurance-related business unit to MedImpact Healthcare Systems for approximately $575 million.

In June 2024, the Detroit Free Press reported that Rite Aid was preparing to shut all remaining stores in Michigan. Shortly after, the company issued a WARN notice indicating plans to close its distribution center in Waterford, resulting in nearly 200 layoffs scheduled for August 2024. By that month, Rite Aid had closed or announced closures totaling 38% of its store base—equivalent to 778 locations—including all Michigan outlets and all but four stores in Ohio.

In September 2024, Rite Aid exited bankruptcy proceedings and transitioned into a privately held entity. Matt Schroeder, previously serving as chief financial officer, was promoted to chief executive officer.

Second bankruptcy and shutdown

Rite Aid store locations as of January 2025

After an unsuccessful attempt at restructuring, reports emerged on April 4, 2025, indicating that Rite Aid was preparing to initiate Chapter 11 bankruptcy proceedings for the second time. The company was simultaneously exploring alternative strategies, including the potential sale of some or all of its assets. Later, on April 22, Rite Aid revealed plans to divest itself in multiple segments due to dwindling cash reserves. The company anticipated that most stores would be sold to the highest bidders, while any unsold locations would be permanently closed.

On May 5, 2025, Rite Aid officially filed for Chapter 11 bankruptcy for the second occasion within a two-year span, reporting assets and liabilities ranging between $1 billion and $10 billion. The company announced intentions to liquidate all assets and shutter all remaining pharmacy outlets as part of its efforts to address financial difficulties stemming from debt burdens, intensified competition, and inflationary pressures. Following a failure to secure additional financing, Rite Aid declared plans to eliminate all jobs and either close or sell its remaining approximately 1,200 stores. The company cited an inability to maintain inventory at numerous locations due to lenders withdrawing support.

Later in May, it was disclosed that Rite Aid would close 115 stores across ten states within weeks. The deadline for submitting bids on pharmaceutical assets was set for May 13, with auctions scheduled for the following day. For the company’s remaining assets, bids were due by June 13, with auctions planned for June 20. Additionally, on May 13, Rite Aid announced that June 5 would be the final day customers could redeem gift cards, coupons, rewards, or process returns and exchanges. Further store closures were announced on May 14.

On May 15, Rite Aid transferred pharmacy prescription files from over 1,000 locations to competitors including CVS Pharmacy, Walgreens, Albertsons, and Kroger. CVS Pharmacy emerged as the largest purchaser, acquiring prescription records from 600 sites in 15 states along with 64 Rite Aid stores located in Idaho, Oregon, and Washington. This transaction received court approval on May 21. Subsequently, on May 16, Rite Aid reported an additional closure of 27 stores.

By May 27, plans were in place to close 360 more stores after failing to find buyers for prescriptions at these locations. On May 29, Giant Eagle acquired prescription files from 78 Rite Aid stores in Pennsylvania and Ohio. Since October 2023, over 800 Rite Aid outlets had been closed by early June. On June 9, reports indicated another round of closures involving approximately 230 stores.

On June 27, 2025, court authorization was granted for Rite Aid to sell its subsidiaries Thrifty PayLess and Thrifty Ice Cream to Hilrod Holdings—a private firm managed by Monster Beverage executives Hilton Schlosberg and Rodney Sacks—for $19.2 million.

By July 6, it was reported that an additional 114 stores would cease operations, pushing total closures beyond the 1,000 mark. As of July 2025, out of the original stores operating prior to the second bankruptcy filing, approximately 1,184 have either been closed or are undergoing liquidation sales. Only about 56 outlets remain open; however, their future status has not yet been disclosed.

Finances

During the second quarter of 2022, Rite Aid disclosed basic and diluted earnings per share of -1.86, marking a notable decline compared to the previous quarters' figure of -0.24 per share.

2023 24.091.900 -749.936

Year	Revenue (in thousands USD$)	Net income (in thousands USD$)	Total assets (in thousands USD$)	Employees	Stores
2005	16,715,598	302,478	5,932,583	71,200	3,356
2006	17,163,044	1,273,006	6,988,371	70,200	3,323
2007	17,399,383	26,826	7,091,024	69,700	3,333
2008	24,326,846	−1,078,990	11,488,023	112,800	5,059
2009	26,289,268	−2,915,420	8,326,540	103,000	4,901
2010	25,669,117	−506,676	8,049,911	97,500	4,780
2011	25,214,907	−555,424	7,555,850	91,800	4,714
2012	26,121,222	−368,571	7,264,385	90,000	4,667
2013	25,392,263	118,105	6,985,038	89,000	4,623
2014	25,526,413	249,414	6,860,672	89,000	4,587
2015	26,528,377	2,109,173	8,777,425	89,000	4,570
2016	30,736,657	165,465	11,277,010	90,000	4,561
2017	32,845,073	4,053	11,593,752	88,000	4,536
2018	21,528.968
8.989.327	60.800	2.550
2019	21.639.557
7.591.367	53.100	2.464
2020	21.928.390
2021	24.043.240
2.451
2022 24.568.260 -538.478	2.229
2.102

Federal Trade Commission (FTC)

In February 1996 the Federal Trade Commission determined that Rite Aid breached its settlement terms by failing to divest stores located in Maine and New Hampshire. This directive had been issued in 1994 to address United States antitrust law concerns linked to the acquisition of LaVerdiere's by Rite Aid. Subsequently in late February 1998 the FTC imposed a $900,000 penalty on Rite Aid due to its noncompliance in selling two drugstores in Maine and one in New Hampshire.

Sale of expired merchandise

In June 1999, Rite Aid disclosed that over 200 expired products, including condoms, baby formula, and infant medications, were found in inventory across fifty of its California outlets. Around mid-June 1999, the Attorney General of West Virginia, Darrell V. McGraw Jr., prepared legal action against Rite Aid for distributing outdated baby formula, condoms, and other goods in its 132 stores throughout West Virginia. Following a report by WCHS-TV highlighting expired items at Rite Aid and CVS locations, the company consented to withdraw these obsolete products from their shelves.

Cantrell's Pharmacy v. Rite Aid

In March 1982, Rite Aid sought an injunction against Jack M. Cantrell, proprietor of Cantrell's Pharmacy, alleging breach of a non-compete agreement that prohibited him from opening a store within three miles for five years. Cantrell had previously sold a pharmacy to Rite Aid in Boiling Springs, North Carolina. During a hearing in June 1983, Cantrell testified that his clientele was primarily from the Parris Bridge Road vicinity of Boiling Springs, situated approximately 3.2 miles away from the Rite Aid location. In July 1983, Judge Paul M. Moore ruled in favor of Cantrell.

Eva Howlett v. Rite Aid

In January 1988, Eva Howlett observed her three-year-old daughter Katlyn exhibiting glassy eyes before collapsing. Upon checking her 20-month-old twin sons, Jacob and Joshua, she found them still asleep after eight hours. Having administered prescribed doses of thorazine—recommended by a physician from Waterville hospital—to all three flu-affected children, she was later advised by a pharmacist at the Rite Aid where she obtained the medication to immediately seek treatment at Eastern Maine Medical Center. The pharmacist suspected an incorrect dosage had been dispensed. The children received intravenous therapy, underwent electrocardiogram tests, and were supplied with oxygen, with Joshua appearing unresponsive. The following day, Katlyn experienced shock, while Joshua required ongoing care due to an irregular heartbeat. His final EKG was conducted in April 1988. By December 1988, Rite Aid agreed to compensate Katlyn $44,189 (of which $9,322 covered medical and legal costs), Jacob $31,592 (with $6,502 allocated for medical and legal fees), and Joshua $33,314 (including $8,354 for medical and legal expenses). These payments were scheduled to be disbursed when the children reached adulthood except for the immediate coverage of medical and legal bills. In January 1989, Howlett initiated a lawsuit against Rite Aid in the Penobscot County Superior Court seeking unspecified damages related to her emotional distress.

Nijjar v. Rite Aid

In February 1989, it was disclosed that Sohander Nijjar’s parents initiated legal action against Rite Aid in the United States District Court for the District of Maine located in Bangor. They alleged that a pharmacist at a Rite Aid store in Van Buren, Maine had dispensed a double-strength dose of sinemet, a medication prescribed for Parkinson's disease, which Nijjar was taking.

Paul v. Rite Aid

Also in February 1989, Randall Smith, attorney for the Howlett family, announced he was handling another case involving an incorrect prescription filled by a Rite Aid pharmacist. Smith asserted that Joseph Paul from Old Orchard Beach, Maine was mistakenly given the antidepressant amitriptyline instead of his prescribed heart medication, atenolol, which was critical due to his condition of fluttering heart.

Rite Aid v. United States and Wilczynski v. Rite Aid

In early April 1989, prosecutors from Wood County, Ohio were assisting the state pharmacy board with an investigation into an alleged bribe. However, the investigation’s prosecutorial oversight was abruptly transferred to officials in Cuyahoga County. Later that month, Martin Grass was taken into custody in Cleveland and subsequently released on a $100,000 bond. In May 1989, Rite Aid initiated a defamation suit against Melvin Wilczynski, a member of Ohio’s state pharmacy board who prosecutors accused of being solicited for a bribe by Grass. The complaint asserted that Wilczynski had provided misleading information to state authorities regarding Grass’s alleged bribery. Rite Aid’s legal team sought to conduct a deposition to question Wilczynski. By late June 1989, United States district judge Alvin Krenzler of the United States District Court for the Northern District of Ohio halted both the deposition and Rite Aid’s demand for Wilczynski to produce documents or admit to any actions taken on behalf of Rite Aid until the criminal bribery case against Grass was resolved.

In August 1989, Grass entered a plea of not guilty to bribery accusations before Judge Jose Villanueva of the Cuyahoga County Common Pleas Court. In July 1990, George J. Moscarino, attorney representing both Grass and Rite Aid, contended that Wilczynski had initiated discussions with Rite Aid which ceased when law enforcement interrupted a meeting at a Sheraton hotel near Cleveland Hopkins International Airport. During this encounter, Grass issued Wilczynski a check exceeding $33,000; prosecutors argued it was a bribe while defense maintained it was payment for terminating a consulting agreement Wilczynski held with Lane Drug. Wilczynski was serving his second four-year term on the Ohio pharmacy board at that time. Moscarino further explained that conflicts between Rite Aid and the Ohio pharmacy board arose over access rights to pharmacies formerly operated by Gray Drug. Rite Aid resolved this issue by paying a $50,000 penalty in January 1989. He also noted that the board had issued warnings concerning Rite Aid’s failure to properly handle paperwork related to returning expired medications.

Demorest and Demorest v. PNC Bank and Rite Aid

On November 8, 1995, Eric Taylor and Ernest Jones abducted and killed Ronald S. Demorest, who managed the Homewood, Pennsylvania store. In March 1996, Demorest's parents initiated a wrongful death lawsuit against Rite Aid and PNC Bank, alleging insufficient security measures contributed to his murder. By November 1996, Judge Bernard Scherer of Westmoreland County dismissed PNC Bank from the case. Subsequently, in October 1997, Judge Scherer also removed Rite Aid from the lawsuit, ruling that the company was shielded from liability under worker's compensation laws.

Residents of Brandon Place and Thornbury v. Rite Aid

Between 1997 and 1999, residents from the Brandon Place and Thornbury communities in Tuscaloosa attempted to contact Rite Aid to express concerns about excessive noise, bright lighting, the presence of 18-wheelers parked near their fences, and recurring flooding. In February 1999, attorney Delaine Mountain was retained by fifty-seven homeowners. According to realtor Gail Cole, these issues negatively impacted property sales, with homes not selling as readily as before.

William Ronci v. Rite Aid Corp.

In September 1999, Bill Ronci, proprietor of Family Discount Drugs and Trendi's Emporium, initiated legal action against Rite Aid. The company had planned to construct a smaller loading dock at a different site to accommodate a drive-thru pharmacy for customers. However, during the building process of the Rite Aid store, water leaked through the roof into Trendi's Emporium, causing damage to clothing and other inventory. Ronci continued pursuing this lawsuit against Rite Aid for over three years.

Rite Aid shareholders v. Rite Aid Corp.

In November 2000, Rite Aid reached a $45 million settlement with its shareholders in a class action lawsuit pending in United States district courts located in Philadelphia and Delaware. This agreement allowed the company to initiate legal action against Grass, Noonan, Bergonzi, and the external auditor KPMG. The settlement was financed through liability insurance and the issuance of $155 million in company stock.

By June 2003, the initial disbursements from this settlement were distributed to both former and current Rite Aid shareholders. This payout represented one aspect of the financial repercussions stemming from the accounting scandal that culminated in Grass pleading guilty to federal conspiracy charges. Additionally, Rite Aid incurred $120 million in legal defense costs related to the former executives.

Grass, Brown, Bergonzi, and Sorkin v. United States

On February 27, 1999, as the fiscal year drew to a close, Rite Aid deducted amounts ranging from $45,000 to $100,000 from payments owed to several suppliers—including Bayer AG, Bic Corp, The Dial Corporation, and Mars Inc’s M&M's—citing damaged or outdated inventory at acquired or renovated stores. Frank Bergonzi affirmed that all deductions taken were deemed legitimate.

In June 2002, the Securities and Exchange Commission (SEC) filed a 96-page indictment containing thirty-seven criminal charges against senior Rite Aid officials. The allegations included conspiracy to defraud, securities fraud, and making false statements to the SEC. The indictment further accused Grass and Brown of witness tampering and obstructing investigations. Prosecutors revealed that on June 10, 1999, Bergonzi instructed employees to continue making unsupported accounting entries. Two days later, after an accounting manager raised concerns directly with Grass about Bergonzi's actions, Bergonzi reversed approximately one-third of those entries and substituted them with additional unsupported records.

CEO Martin Grass and Franklin C. Brown were charged with artificially increasing reported losses by $1.6 billion over several years. Originally, Rite Aid had declared profits of $541 million for fiscal years 1998 and 1999; however, in the first quarter of 2000, it reported losses totaling $670.5 million. Prosecutors also alleged that Grass and Brown agreed to pay over $11 million to settle a lawsuit filed by a former executive as a means of silencing him. Furthermore, Grass directed an officer to fabricate meeting minutes for the Health Committee to secure an interim line of credit backed by stock from its then-subsidiary PCS Health Systems Inc.

Several executives received prison sentences following these events, including Grass—son of Rite Aid’s founder—who ultimately served six years behind bars.

In January 2003, Rite Aid reached a $10.75 million settlement agreement with its insurers aimed at resolving claims brought by the employees’ retirement fund. The lawsuit contended that the company breached its fiduciary duties by permitting employees to purchase company stock while Grass and Brown manipulated financial records.

On June 28, 2003, the federal judge overseeing Brown’s case ordered him to enter a plea by July 14 or proceed to trial on thirty-five counts of indictment. Eric S. Sorkin pleaded guilty to one count of obstruction of justice after admitting to misleading investigators and providing false information to authorities. He faced a minimum sentence of five years imprisonment along with a fine up to $250,000.

Brown's trial for the thirty-five count indictment commenced in September 2003.

Saylor v. Rite Aid Corp

In September 2002, Keith Saylor, a pharmacist employed at the Barbourville, Kentucky location, reported concerns regarding improper handling of medications delivered to his store. He observed that some drugs arrived either frozen or covered with frost. During the summer months, patients returned inhalers that were nearly depleted, which Saylor suspected had been exposed to excessive heat while transported in trucks. To document these issues, he began recording discussions with the delivery drivers. After raising these concerns with management, Saylor initiated legal action to safeguard his position following meetings that he recorded. Rite Aid terminated his employment, citing insubordination and unauthorized recording of conversations as justification for dismissal.

Rite Aid Corp v. United States

On July 25, 2004, Rite Aid consented to a $7 million settlement resolving claims that it had submitted fraudulent prescription reimbursement requests to federal health insurance programs.

On July 14, 2022, Rite Aid reached a $10.5 million settlement agreement with counties in Georgia, North Carolina, and Ohio. This arrangement permitted the company to avoid participating in the upcoming round of opioid-related lawsuits scheduled against major pharmacy chains nationwide beginning in 2023.

Subsequently, on March 14, 2023, the U.S. government filed a lawsuit against Rite Aid alleging the company failed to identify warning signs while unlawfully dispensing hundreds of thousands of controlled substance prescriptions—including opioids—between May 2014 and June 2019.

Hall v. Rite Aid Corporation

In the class action suit concerning employee seating (Hall v. Rite Aid Corporation, San Diego County Superior Court), the parties agreed to an $18 million settlement coupled with the implementation of a two-year pilot program providing seating at front-end cashier stations. The Court granted preliminary approval of this settlement on September 14, 2018, followed by final approval on November 16, 2018.

Pilsner, Nuckols, and Taylor v. United States

In September 2018, legal authorities brought charges against James W. Pilsner, formerly the vice president of advertising at Rite Aid, along with Larry Nuckols and Vance Taylor, co-owners of Nuvision Graphics, for their involvement in a kickback scheme that utilized fraudulent or exaggerated invoices spanning from 1995 to 2017. Additionally, Pilsner faced charges related to tax evasion. In October 2018, all three defendants admitted guilt in connection with a $5.7 million kickback fraud targeting Rite Aid. Subsequently, Pilsner received a prison sentence of two years.

In re National Prescription Opiate Litigation

Rite Aid has disclosed that it is among the defendants in the coordinated multidistrict litigation titled In re National Prescription Opiate Litigation, which is currently underway in the U.S. District Court for the Northern District of Ohio. The lawsuit involves multiple plaintiffs—including municipalities, hospitals, counties, and third-party payors—who assert claims related to the consequences of extensive opioid misuse. The defendants named encompass various entities within the pharmaceutical supply chain such as manufacturers, wholesale distributors, and retail pharmacy chains.

Byron Stafford v. Rite Aid Corp. and Robert Josten v. Rite Aid Corp.

In January 2019, Rite Aid disclosed its involvement in two consumer class action lawsuits filed in the United States District Court for the Southern District of California. These cases alleged that the company had overcharged insurance providers for prescription medications, which led to customers paying excessive co-pays.

Surveillance practices

A July 2020 report by Reuters revealed that throughout the 2010s, Rite Aid implemented facial recognition video surveillance technology at various retail outlets across the United States. The systems, supplied by vendors such as FaceFirst and DeepCam LLC, were utilized at numerous locations. Cathy Langley, who served as vice president of asset protection at Rite Aid, described the technology as involving "feature matching," a term connected to image feature extraction techniques within AI-driven video surveillance. She indicated that this technology contributed to a reduction in violence and organized criminal activity inside stores. Meanwhile, Bob Oberosler, a former vice president of asset protection, highlighted enhancements in employee safety and a decreased reliance on law enforcement agencies. In response to Reuters’ investigation later that year, Rite Aid confirmed it had discontinued the use of facial recognition software and deactivated the related cameras.

Read Hayes, director of the National Retail Federation Loss Prevention Research Council—which in 2018 described facial recognition as "a promising new tool" worthy of assessment—noted that Rite Aid’s surveillance initiative was among the largest retail applications of this technology. Other major U.S. retailers, including The Home Depot, Menards, Walmart, and 7-Eleven, were also conducting pilot programs or implementing facial recognition systems during this period.

Analysis by Reuters found that stores located in communities where people of color constituted the predominant racial or ethnic demographic were three times more likely to have facial recognition technology installed. This raised concerns given the extensive history of racial segregation and profiling in the United States. Rite Aid defended its location choices as "data-driven," citing factors such as each store’s theft record, local and national crime statistics, and existing site infrastructure.

Customer loyalty and rewards programs

Template:Unreferenced section The Wellness+ card served as Rite Aid's complimentary shopping rewards program. Initially introduced across the country on April 18, 2010, it later integrated into the American Express-supported Plenti rewards system in May 2015, enabling customers to accumulate Plenti points with every purchase. Rite Aid reinstated the Wellness+ program on January 1, 2018, offering Wellness+ BonusCash redeemable at its stores, prior to Plenti's closure and bankruptcy declaration on July 10, 2018.

On June 5, 2025, Rite Aid discontinued all rewards programs as part of its final closure and second bankruptcy.

Partnerships

In January 1999, General Nutrition Centers (GNC) collaborated with Rite Aid to introduce approximately 1,500 GNC store-within-store locations inside Rite Aid pharmacies. Additionally, a June 1999 alliance with Drugstore.com allowed Rite Aid customers to order medical prescription medications online for same-day pickup at stores.

In June 2019, Amazon revealed that shoppers could collect their purchases at designated counters within over 100 Rite Aid locations nationwide. This service, named Counter, had previously been implemented in the UK through partnerships with Next clothing stores and in Italy via Giunti Al Punto Librerie, Fermopoint, and SisalPay outlets.

Rite Aid joined forces with Homeward, a rural home care startup, in May 2022. Through this collaboration, Medicare-eligible clients gained access to Homeward’s clinical services and mobile care units.

External links

• Archived version of the official website