Bankrupt Retail Giant May Shut Down Its Last Remaining Idaho Stores

Here we go again. America’s 29th largest retailer has filed for bankruptcy for the second time and this time it looks like Idaho’s remaining locations may be on life support. 

If you’re a long time reader, you know that we’ve been following Rite Aid’s fall from grace since October 2023. Days before their first bankruptcy filing, the pharmacy chain was in danger of being delisted from the New York Stock Exchange for trading below $1 for more than 30 trading days in a row. 

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At the time, the Wall Street Journal reported that the company had more than $3.3 billion in debt while being embroiled in lawsuits for illegally filing opioid painkiller prescriptions. Leading up to that filing, the publication predicted Rite Aid to close at least 400 of the 2,100 locations they owned. However, by the time they emerged from their first bankruptcy in September 2024, Rite Aid had closed more than 850 locations. 

Leading up to and throughout the first bankruptcy, Idaho lost six stores including: 

3250 S Eagle Rd, Meridian

1600 N Main Street, Meridian

5005 W Overland Road, Boise 

660 E Boise Ave, Boise 

10600 W Fairview, Boise 

1100 S Vista, Boise 

Rite Aid Files for Chapter 11 Bankruptcy Again

After Rite Aid filing for bankruptcy on May 5, CEO Matt Schroder sent an email to Rite Aid employees which said: 

I wanted to let you know that Rite Aid Formally commenced Chapter 11 proceedings to conduct sale of our prescriptions, pharmacy and front-end inventory, and other assets. This means that over the next several months, all Rite Aid distributions will be closing and all stores will either close or be operated under a different banner, should a buyer be interested in purchasing the stores.

Another employee was informed of their immediate termination via a letter that they shared on Reddit. The letter explained: 

The dramatic downturn in the economy, potential litigation and increased costs (including tariffs) from our suppliers and landlords have necessitated employee separations that were unseen.

Penn Live says that the Pennsylvania-based chain informed vendors that they have “generally stopped purchasing goods and services” outside of those that are necessary during the bankruptcy process. 

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Fast Company reports that most Rite Aid stores will remain open “for the next few months,” giving customers enough time to get prescriptions filled or have them moved to another pharmacy. While the bankruptcy docket doesn’t include a list of store closures yet, Fast Company called closures or sales “inevitable” 

The company, itself, posted a notice on their website that Rite Aid Rewards will no longer be issued beginning May 6, 2025. The last day for gift cards is June 5, 2025. That's also the same time they'll stop accepting exchanges and returns.

We’ll keep following this story as it develops. For now, these are the Idaho Rite Aid locations still standing: 

• Rite Aid #05413: 1515 West State Street, Boise
• Rite Aid #05414: 7020 West State Street, Boise
• Rite Aid #50409: 2107 Blaine Street, Caldwell
• Rite Aid #05420: 208 West Ironwood Drive, Coeur d’Alene
• Rite Aid #06200: 43 West Prairie Shopping Ctr, Hayden
• Rite Aid #05408: 1904 19th Avenue, Lewiston 
• Rite Aid #05410: 451 Deinhard Lane, McCall
• Rite Aid #05421: 1810 West Pullman Road, Moscow