Pharmacy Chain With 179 Locations in New York Could Shutter More Stores

One of America's most popular pharmacy chains could be shrinking once again - or disappear entirely.

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If you pick up your prescriptions at America's 4th largest pharmacy chain, you may be forced to go elsewhere.

Rite Aid Could Declare Bankruptcy for a Second Time

The massive drugstore chain is reportedly in trouble once more. Two years ago, Rite Aid filed for bankruptcy and shuttered more than 800 stores nationwide.

Read More: Ride Aid Closing Down 60 Locations in New York

The company emerged from bankruptcy in September and the cost-cutting measure reportedly saved it about $2 billion. Unfortunately, the move didn't save the chain for long because but it looks like its financial future is unstable.

Bloomberg reports the chain is considering filing for bankruptcy a second time, which puts its remaining 1,200 locations into uncertain territory.

The report claims Rite Aid is struggling with debt and low cash flow, so it is considering selling off more of its assets. However, sources to the outlet claim Rite Aid may be going out of business entirely.

Unnamed sources told Bloomberg that Rite Aid is planning to sell off its individual stores and close down the rest.

Rite Aid Isn't the Only Pharmacy Chain That's Struggling

The nation's #1 and #2 drugstore chains are also facing financial pressure, according to Bloomberg.

Walgreens, the second-largest pharmacy chain in America, is reportedly cutting about 1,200 stores by 2028 after it was acquired by the private equity firm, Sycamore Partners. The chain was purchased for a cool $23.7 billion.

CVS, which remains the top drugstore in the country, is also looking to shutter hundreds of stores in the coming months.  The chain will reportedly close down about 270 locations this year.

CVS said the move needs to happen because of changing consumer needs and a need to streamline its company.

Why Are Drugstores Struggling?

You're not imagining it. Pharmacies have taken massive hits since the pandemic and their futures don't look as bright.

CNBC looked into why CVS, Walgreens, and Rite Aid have been having liquidity problems due to several factors.

First and foremost is the challenging economy and inflation, which is forcing customers to change their spending habits.

Secondly, insurance companies are pulling back on reimbursement rates while jacking up medical costs, which is impacting their bottom line.

Other serious matters are a rise in retail theft, understaffing, and the increasing threat of online shopping like Amazon. It also doesn't help that Walmart has also been poaching customers and is now the nation's third-largest pharmacy.

Because of these challenges, pharmacies are scrambling to stay afloat. Unfortunately, it seems Rite Aid might not be sticking around that much longer.