Laid off from Rite Aid.

Rite Aid didn't cut staff and carry on. It filed a second bankruptcy in May 2025, sold its prescription files to the chains it had competed with, and closed the last 89 stores that October. Your severance, your last check and your pension all outlived the company.

At a glance

What's known about Rite Aid severance and layoffs

  • May 5, 2025 · Second Chapter 11 filed
  • October 3, 2025 · Last 89 stores closed
  • December 31, 2025 · Liquidating plan consummated
  • 11 all time, 6 since 2025 · Filings in our tracker
  • 1,096 jobs in Pennsylvania, May 2025 · Largest filing
  • 70% of the contract amount · Severance, UFCW 8 members
  • Ended with the month you worked · Health coverage, UFCW 8 members
  • PBGC stepping in, benefits capped by law · Rite Aid Pension Plan

Recent Rite Aid layoffs

The Rite Aid Pension Plan is moving to the federal insurer

PBGC says it's moving to take over the Rite Aid Pension Plan, because the plan qualifies for termination and can't cover everything it promised, on a page it last updated in January 2026. The court confirmed the company's plan in November 2025, and on December 31, 2025 the effective date arrived and the plan was consummated.

Previous rounds

Rite Aid layoff history

Rite Aid stopped being an employer in stages, and the last stage closed the file. It filed its second Chapter 11 on May 5, 2025, jointly administered under Case No. 25-14861 before Chief Judge Michael B. Kaplan in the District of New Jersey, and told the court that whatever went unsold would no longer be owned or operated by Rite Aid. All 89 remaining stores had closed by October 3, 2025, and the effective date of the plan arrived on December 31. A chain that ran 5,059 stores and employed 112,800 people in 2008 finished at zero, and the questions people have about their own money outlasted it.

If you worked in a union store, the terms were written down, and one decided whether you got paid at all. In June 2025 UFCW 8 told the members it covers that anyone who kept working and didn't resign was eligible for 70% of the severance in the collective bargaining agreement, against a signed release, then put the condition plainly, that severance was only paid if you remained employed until your store officially closed, and leaving sooner could forfeit it. UFCW 3000, which covers Bartell Drugs and Rite Aid members in Washington, was blunter, saying it had reports that Bartell Drugs told members to put in their two weeks' notice if they were leaving, and warning that giving notice instead of being laid off meant no severance pay. Its contract set the amount by length of service and worked it out on average hours in the fourteen weeks before separation.

Coverage and accrued time ran on separate clocks. UFCW 8 said its members stayed covered under their existing benefits through the last day of the month in which they were employed, which for anyone separated early in a month is a short tail. On accrued time the same notice said the employer would pay unused paid time off, vacation and holidays as their own contracts or state law required, so what you were owed turns on your contract and your state. Seniority was thinner comfort. Members had the right to transfer to a union store in order of seniority, but UFCW 8 warned that with stores in one area closing within days of each other, they wouldn't have enough time to exercise bumping rights. The pension left on its own track. PBGC says it's moving to take the plan over, because the plan qualifies for termination and can't cover everything it promised.

There's no Rite Aid HR left to call, so the docket holds what answers exist. Kroll runs the claims site for Case No. 25-14861, and it draws a distinction that catches people out, telling anyone asking about the 2023 proceedings, Case No. 23-18993, or filing a claim in them, to use the separate site for that case. The 2025 estate is largely wound up, since on December 30, 2025 the court closed 117 affiliated debtors' cases and left Lakehurst and Broadway Corporation, Case No. 25-14831, as the remaining case. Whether any one person's final wages were paid, and where that claim ranked, isn't in the reporting we track, so the docket is the only place to look. On the notice itself, the Labor Department is the wrong desk. It says the federal court solely enforces the Act, and that its own answers don't bind the courts, which makes a WARN claim a lawsuit, not a complaint form.

Our tracker holds 11 Rite Aid filings all time, and 6 filings covering 1,926 jobs since the start of 2025, across four states, led by 1,096 jobs on one Pennsylvania filing in May 2025. It holds nothing for 2026, which is what the end of a company looks like in filing data. The company said all of its distribution centers would close, while its stores would close or be run by a new owner, and the May 15 announcement moved pharmacy assets from more than a thousand stores to CVS, Walgreens, Albertsons, Kroger and Giant Eagle, with CVS taking the files from 625 pharmacies. Schroeder described those deals as preserving jobs for some of the company's team members, a claim with no number against it. One caution carries over from the first bankruptcy. In March 2024, employees told abc27 that Rite Aid pulled back severance payments it had already deposited, with a company email saying the March 7 payments had been delayed to preserve cash in the short term. Keep your pay stubs, benefit statements and separation letter somewhere you can reach them, because each of these processes asks for them.

Reporting on previous Rite Aid layoff rounds

How Rite Aid's layoffs compare to other companies

Across the companies tracked here, a layoff usually leaves an employer still standing behind it. Rite Aid sold pharmacy files and pharmacy assets to five competing chains and wound itself up. How many of its people those buyers took on isn't in the reporting we track. What's left is an estate, not a company.

What to do after being laid off from Rite Aid

  1. File for unemployment in the state where you worked. Benefits run from your filing date, and severance usually doesn't block you. Rite Aid's biggest hubs: Pennsylvania, California, Maryland, Washington. Somewhere else? Every state is here.
  2. Apply for financial and hardship assistance. Unemployment supplements income, but food benefits, health coverage and utility help are often available as well. Here's some of what Rite Aid's hub states run: Pennsylvania, California, Maryland, Washington, and every other state is here.
  3. Mind the health insurance window. Losing coverage opens a 60-day special enrollment period, and an ACA plan usually beats unsubsidized COBRA. Compare your options before the employer coverage lapses, and read how the COBRA clocks run if you are weighing it seriously.
  4. Get your real runway number. Severance plus savings divided by reality. The calculator takes five minutes.
  5. Know which clocks are already running. Severance review windows, COBRA election, visa grace periods, and 401(k) rollovers all run on federal deadlines that started at termination. All five deadlines are here.

Rite Aid layoff and severance questions

Did Rite Aid pay severance when it closed?

It depends which contract covered you. The published terms come from two UFCW locals, not from the company. Writing to its own members in June 2025, UFCW 8 said anyone who kept working and didn't resign was eligible for 70% of the severance in the collective bargaining agreement, against a signed release, and that severance was only paid if you stayed employed until your store officially closed. UFCW 3000 members at Bartell had a separate contract schedule. No terms for non-union staff are on record in the reporting we track.

What happened to the Rite Aid pension plan?

It went to the federal insurer. PBGC lists the plan as insured under Title IV of ERISA and says it's moving to take the plan over, because the plan qualifies for termination and can't cover everything it promised. PBGC pays what your plan promised only as far as the limits written into the law allow, so those limits are worth checking your own statement against.

Where do I send a claim now that Rite Aid is gone?

Start by working out which case you mean. Kroll is the claims agent for New Rite Aid, LLC, Case No. 25-14861 in the District of New Jersey, and it tells anyone asking about the 2023 proceedings, Case No. 23-18993, or submitting a claim in them, to use the separate site for that case. Deadlines and the standing of any one claim sit on the docket rather than in the reporting we track, so read it there before assuming a window is open.

Why did Rite Aid close all of its stores?

It went into bankruptcy and sold what it could. Rite Aid filed a second Chapter 11 on May 5, 2025, told the court it was selling its prescriptions, pharmacy and front-end inventory, and said anything it didn't sell would no longer be owned or operated by Rite Aid. Chief executive Matt Schroeder told regulators that lenders wouldn't fund payroll and employment-related expenses if the company kept its entire workforce.

Did Rite Aid file WARN notices before the layoffs?

Yes. Our tracker holds 11 filings all time, and 6 filings covering 1,926 jobs since the start of 2025. It holds none for 2026, which is what a finished liquidation looks like, not a quiet year. If you think your notice fell short, the Labor Department is the wrong desk. It says the federal court solely enforces the Act, and its own answers don't bind the courts.

Where do I file for unemployment after being laid off from Rite Aid?

In the state where you worked, not where the company is headquartered. Rite Aid's biggest U.S. hubs are Pennsylvania, California, Maryland, Washington. Severance usually doesn't block you from filing, and benefits run from your filing date, so file the same week.

Is it OK to file for unemployment after a layoff at Rite Aid?

Yes. Unemployment insurance is funded by payroll taxes employers pay on wages, the claim never appears on credit reports or background checks, and future employers cannot see it. If the hesitation itself is the obstacle, whether filing is OK has its own article.

What happens to my health insurance after a layoff at Rite Aid?

Your plan sets the end date rather than the law, so the separation packet is where that date actually lives, and it is often the last day of the month rather than your last day of work. After coverage ends, COBRA lets you keep the identical plan by paying the whole premium yourself, up to 102 percent of what the plan really costs, which lands as several times the payroll deduction you were used to. You get 60 days to elect, counted from the later of coverage ending or the election notice arriving, and electing reaches the coverage back to the day the old plan stopped so no gap exists. How continuation coverage works walks the timing, and whether to take it rather than a marketplace plan is a separate decision.

Should I sign the severance agreement right away?

First pin down how much review time you actually have. If you're 40 or older, federal law gives you 21 days to consider an agreement that waives age claims, 45 in a group layoff, and a waiver signed under a shorter deadline can be invalid. If you're under 40, no federal window applies and the deadline in your packet may be real, so confirm it in writing and ask for more time if you need it. Use whatever window you have to read the release terms, especially non-disparagement and no-lawsuit clauses, and don't stall past a real deadline, because offers can be withdrawn.

Can I collect unemployment if I got severance from Rite Aid?

Usually yes, though some states delay benefits until severance pay periods end, and lump sums are treated differently than salary continuation. Check your state's rules on our state benefit pages, and file immediately either way so your claim date is locked in.