Rite Aid has filed for Chapter 11 bankruptcy protection for the second time in less than two years.

The pharmacy chain said it is pursuing a strategic and value-maximizing sale process for substantially all of its assets. It will continue servicing customers in-store and online, and employees will continue to receive pay and benefits.

The company is also working to facilitate a smooth transfer of customer prescriptions to other pharmacies.

“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,” said CEO Matt Schroeder.

According to GlobalData MD Neil Saunders, Rite Aid’s second bankruptcy comes as “no real surprise” as the first time did little to resolve its issues.

The company previously filed for Chapter 11 in October 2023 after reporting $750 million in annual losses. It emerged from bankruptcy as a private company late last year.

Saunders said the business has been on the edge of survival for quite some time and is now unable to secure enough inventory to keep shelves stocked. This in turn deters customers which reduces sales and squeezes cash flow, he added.

While the chain is hoping for a buyer, the analyst believes that there are no ideal suitors at the moment.

“Walgreens, which would once have jumped at the chance to make a deal, is in no position to be snapping up other chains. CVS is in a process of consolidation, so is unlikely to want to add a fairly broken pharmacy to its roster.

“There are wildcards, such as Amazon, which could at least buy the Seattle native Bartell Drugs subsidiary. But this is a long shot,” he elaborated.

Another case is that other chains will “cherry pick” Rite Aid stores, but this would not necessitate a wholesale purchase of the brand or its assets, Saunders said.