Rite Aid has filed for bankruptcy for the second time in less than two years, and the Philadelphia-based pharmacy chain intends to close or sell all of its remaining stores.

Rite Aid will “continue to engage in a marketing and sales process to identify the highest or otherwise best offer for all, substantially all, or a portion of the Rite Aid Companies’ assets … and initiate store closing sales to implement store closings for the Rite Aid Companies’ remaining retail store and distribution center assets,” attorneys wrote in court documents filed Monday in U.S. Bankruptcy Court in New Jersey.

Rite Aid has “continued to face financial challenges, intensified by the rapidly evolving retail and healthcare landscapes,” CEO Matt Schroeder said in a statement announcing the “strategic and value-maximizing sale process.”

During this time, Rite Aid customers will still be able to pick up prescriptions, get vaccinations, and shop for products, the company said. Rite Aid is working to transfer customers’ prescriptions to other pharmacies once stores close.

“For more than 60 years, Rite Aid has been a proud provider of pharmacy services and products to our loyal customers,” Schroeder said. “As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible.”

Rite Aid has about 100 remaining stores in the region after having cut its Philadelphia-area footprint by about 40% since 2022. On its website Monday, the company listed 345 locations in Pennsylvania and 60 in New Jersey.

Rite Aid first filed for Chapter 11 bankruptcy protection in October 2023, citing inflationary pressures and changing consumer behaviors. It emerged from bankruptcy this fall, having slashed about $2 billion in debt and received about $2.5 billion in exit financing. It also became a private company, meaning it no longer had to publicly disclose financial information.

But there were signs of trouble. Customers across the region reported aisles of bare shelves, including on drugstore essentials like cold medicines and pain relievers. Last month, Rite Aid was sued for nearly $7 million over unpaid ads for flu and COVID shots.

To assist with the bankruptcy and sale process, Rite Aid said some of its lenders have committed to $1.94 billion in new financing.

In his statement, Schroeder thanked Rite Aid employees, saying, “we have played a critical role in supporting the healthcare needs of countless Americans.”

Employees assisting with the wind-down will continue to be paid and receive benefits, the company said. According to Bloomberg News, which obtained a letter the CEO sent to employees, Rite Aid is planning to lay off some workers, including at its corporate headquarters in the Navy Yard, with an initial round of terminations beginning Monday.

Rite Aid moved to the “remote” headquarters at the Navy Yard from the Harrisburg suburb of Camp Hill in 2022. Then-CEO Heyward Donigan said it was the dawn of the “new modern Rite Aid.”

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