On October 15, 2023, Rite Aid filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of New Jersey. The filing was part of a restructuring plan to cut debt, resolve litigation claims, and position the company for future growth. The plan included $3.45 billion in financing, an agreement with creditors, and closing underperforming stores. As of June 28, 2024, Rite Aid was approved to exit bankruptcy after a US bankruptcy judge approved a restructuring plan. The drugstore chain has been shrinking its store count for years, losing ground to rivals Walgreens and CVS. Rite Aid has closed almost 550 locations, including 98 in California, and has announced plans to close more in 2024. The company says the closures will help reduce rent expenses and improve financial performance. Rite Aid has also faced more than a thousand federal, state, and local lawsuits accusing it of illegally filling painkiller prescriptions.