Rite Aid considers second bankruptcy; Will Walgreens expand in its place Central Pennsylvania?

(WHTM) — Is there a chance the Rite Aid Pharmacy chain won’t survive, after all?

The Wall Street Journal reported the company might be considering a second Chapter 11 bankruptcy filing. The company closed hundreds of stores—including one in Camp Hill—after filing for bankruptcy in late 2023. Companies frequently reorganize successfully after one Chapter 11 filing, but the outcomes of a second filing are typically more grim.

“We do not typically see companies that do multiple reorgs actually ending up surviving at the very end, especially in a competitive business such as the pharmacy business,” said Sarah Quinlan of the SAQ Economic Advisory.

You might recall it was after Party City’s second bankruptcy filing that the chain decided to close its stores. To be clear, Rite Aid has not indicated an intention to file again.

We asked Quinlan if there is a chance Walgreens might expand in Central Pennsylvania in reaction to Rite Aid’s bankruptcy. In short: probably not because of Walgreens’s own issues.

“Their actual operating business is still in contraction mode,” said Quinlan. “They’ve closed a bunch of stores, and they’re going to continue to.”

We reached out to Walgreens for comment but have yet to hear back.