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Rite Aid: Headed for Bankruptcy?

by Corrie @ Centsable Momma on April 20, 2010 · 24 comments

Rite Aid Deals

With the current rough economy, many businesses are struggling to survive.  One of these companies is Rite Aid.

Competition is tough in the drugstore business with large competitors in CVS and Walgreens.  Rite Aid has struggled with declining sales, earnings losses for 11 consecutive quarters, as well as a large amount of debt from its acquisition of Brooks/Eckerds.

So what does this mean for you?

If Rite Aid were to file for "Chapter 11" bankruptcy, federal law would allow them to stop honoring gift cards (although they would not be required to do so).  If they were to file for "Chapter 7" bankruptcy (which is a total liquidation of the company), then you would be considered a creditor in the bankruptcy case up to the value of your gift card (meaning your gift card would likely have reduced or no value).

So, while it is just speculation that Rite Aid could face bankruptcy, you should be careful with how much money you have invested in Rite Aid gift cards and SCR deals.  Make sure you are only spending money that you could afford to lose if something were to happen.

I would suggest that you request your SCR checks as soon as each SCR period ends.  Also, you might want to think carefully before you roll your SCR check into Rite Aid gift cards.

Remember - just because a company files for "Chapter 11" bankruptcy, it doesn't mean that they can't emerge from bankruptcy a viable company, like GM has.

Corrie from "Centsable" Momma is the Deal Seeking Mom Store Expert for Rite Aid. At "Cents"able Momma, she helps others be "able" to save their "cents" by sharing great deals, coupons, freebies, money saving tips, and even a few methods to earn a little extra money.

{ 24 comments… read them below or add one }

1 Maria S. April 20, 2010 at 3:44 pm

That would mean no more Chocolate Malted Crunch ice cream!

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2 CJ April 20, 2010 at 3:59 pm

Chocolate malted crunch is my fave!!!!

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3 Katie April 20, 2010 at 4:14 pm

I prefer CVS and Wags, b/c I like the instant rewards you get at the register instead of having to mail off and wait, but does anybody think they could be bought out? We've only had Rite Aid for about 2 years, b/c all of our Eckerds turned to Rite Aids. All Eckerd brand things were 50% off, then 50% off plus BOGO, until they were all phased out and replaced with Rite aid brand, so it was a smooth transition.

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4 Heather April 20, 2010 at 4:19 pm

I've been thinking about Rite Aid, hearing that they were struggling financially and wondering if we were going to lose them. I'd sure hate to see them go, after all the freebies I rely on from there.

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5 K April 20, 2010 at 4:24 pm

I would really hate to see RiteAid go. Our only other choice here is Walmart and I will not shop there.

What is all this about Chocolate Malted Crunch ice cream at RiteAid? What brand? Never heard of it. Perhaps I should 'investigate'.

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6 Maria S. April 20, 2010 at 6:30 pm

It's their store brand ice cream. It's been a couple of years since I have had it because I don't live near a Rite Aid and can only get it when I visit family in my hometown of Simi Valley, CA. I know the ice cream brand/store used to be Thrifty's (kind of indicates my age by saying that), but the ice cream brand probably says Rite Aid now. You could always buy a single scoop first if your Rite Aid still has the good ol' fashioned ice cream counter from when it was called Thrifty's, but the 1/2 gallon is priced so low you may want to just get that since single scoops are no longer 15 cents (really indicates how old I am remembering getting a scoop for that price when I was a little kid).

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7 K April 21, 2010 at 1:16 am

Wow...I didn't know RiteAid every had ice cream by the scoop. Interesting. I will have to check out the half gallons. I have never really ever checked out the ice cream at RiteAid before. Now I have a reason. Thanks.
:-)

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8 THRIFTY DRUGS July 22, 2011 at 1:34 pm

THRIFTY DRUGS IS STRONG & MANY FREEBBEES AND DISCOUNTS

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9 Amy April 20, 2010 at 4:57 pm

Rite Aid is the only "large" grocery chain I have in my town... we don't have Walgreens or CVS... it would be a real shame to lose them!

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10 Crystal April 21, 2010 at 9:45 am

Ditto for me. Rite Aid is it for us.

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11 me in millions April 20, 2010 at 5:07 pm

I just wrote about how I was cutting Rite Aid from my list of places I shop. Looks like they cut themselves off the list!

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12 Michelle April 20, 2010 at 5:45 pm

The rite aids in the bay area closed down and Walgreens replaced them.

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13 j April 20, 2010 at 5:50 pm

I would so miss my riteaid--I don't have another good store nearby except for Walmart too and they don't have near the deals.

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14 Chris September 30, 2010 at 11:19 am

Rite aid is the most expensive place ever to shop. I use to work there as a manager. If you want to throw your money away in the trash, then shop here. No bargains but markups

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15 Melissa April 20, 2010 at 6:54 pm

I've gotten burned by this in the past... Remember Homeplace? (it was similar to bed, bath & beyond about 10 years back...) I had recently gotten married and had returned some things for store credit. I had over $100 in gift cards. I heard they were going under, and when I went to spend the money on all the stuff they were clearancing, they told me that they were no longer accepting it and I could call a number and be a claimant on the case. Ha. I called, gave them my info, and a LONG time later, got a letter that said I wouldn't get a cent. Just be careful!!!

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16 AC4 April 20, 2010 at 8:01 pm

I would miss all the diaper deals! With the video reward coupons I got great deals.

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17 Molly April 20, 2010 at 9:07 pm

I live in Las Vegas and all our Rite Aids closed over a year ago. :(

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18 zuly April 20, 2010 at 9:11 pm

i love rite aid! that's my favorite. i've saved so much money especially having two in diapers and one on the way. so sad.

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19 Jennifer April 20, 2010 at 11:27 pm

I love riteaid also, I hope they stay open, I really enjoy there freebies:) Ours in Ohio is getting all new computer systems so I hope that is a good sign.

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20 Diana B April 21, 2010 at 6:02 am

Rite Aid is by far my favorite since they give you cold hard cash back rather than rewards. And the deals are set up perfectly so you don't have to buy "fillers" like at Walgreens. We have a small, run down R.A. in my town that is soon moving to a big, brand new building, so hopefully this doesn't derail that!

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21 E April 21, 2010 at 4:50 pm

i'm with you I like that you get the cash back...not have a coupon that has to be redeemed in a month..don't get me wrong I like CVS too but I really like RA and it's the only store really close by.

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22 Mary M. June 2, 2010 at 10:18 pm

I'm with both of you, Diana and E. I definitely prefer RA over Walgreens and CVS. I don't want credit toward my next purchase, I want the cash I spent back in my pocket. Doint the rebate online is really easy and the rebate check comes in a couple of weeks. I'd really miss them and their many freebies if they closed.

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23 Linda July 2, 2010 at 9:10 pm

What freebies?! This place is going down, because their prices are double that of wal-marts!! I went to buy leg cramp medicine there.. it was 7.69!! and at walmart it was only 3.99!! I haven't shopped there in almost a year, because I'd rather drive the extra ten minutes to my local wal-mart than pay double for something.In my opinion if they would stop all these "reward" programs they may actually be able to lower prices and bring more customers in!!

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24 Lukas August 29, 2010 at 1:22 pm

I never been in a Rite Aid pharmacy before, there isn't any near my town so I don't really know that much about them but since they're near the #1 pharmacy, then I guess I wouldn't want to see them go.

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