Thrifty Ice Cream is closing all of its locations.
The 500 ice cream counters located within Rite Aid stores across the United States are set to close following the pharmacy chain’s Chapter 11 bankruptcy filing earlier this month, according toThe Street.
Despite the outlets closing, Thrifty Ice Cream will continue to be sold in tubs at thousands of retailers across the U.S.
The Los Angeles-based ice cream brand was first launched in 1940 and acquired by Rite Aid stores in 1996. Throughout the last two years, the pharmacy chain has been closing locations across the country in states including California, New York, New Jersey, Pennsylvania, New Hampshire, Oregon, and Washington, among others.
Its recent bankruptcy filing marks the second time Rite Aid has taken the step since October 2023.
“While we have continued to face financial challenges, intensified by the rapidly evolving retail and healthcare landscapes in which we operate, we are encouraged by meaningful interest from a number of potential national and regional strategic acquirors,” Rite Aid CEO Matt Schroeder said in a statement at the beginning of May.
“As we move forward, our key priorities are ensuring uninterrupted pharmacy services for our customers and preserving jobs for as many associates as possible,” he added.
The firm has liabilities between $1 billion and $10 billion, according to a petition filed in New Jersey bankruptcy court obtained by Reuters.
The company has secured nearly $2 billion in new financing from existing partners as it continues its transition process, it announced.
Reports that Rite Aid was low on cash and preparing a sale emerged in April, a month after the chain reportedly entered into talks with creditors over concerns it was running out of liquidity.
To decrease its debts, Rite Aid will be closing hundreds of its around 1,200 stores in addition to plans to auction off its intellectual property and assets, which include the Thrifty Ice Cream businesses and the factory in El Monte, California.
If Thrifty Ice Cream is purchased by a buyer, the ice cream could continue to be distributed to grocery stores and other retailers.
Rite Aid previously filed for bankruptcy in October 2023, after it suffered $750 million in losses the previous financial year.
Rite Aid used the bankruptcy to cut $2 billion in debt, close hundreds of stores, and sell its pharma benefit company, as well as negotiate settlements in a series of opioid lawsuits. But by 2024, the company still had some $2.5 billion in debt and was owned by its lenders.
