Rite Aid Corp. - Newly Bankrupt - Specimen Stock Certificate

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Rite Aid Corporation, an American drugstore chain headquartered in Philadelphia, Pennsylvania, has a storied history. Established in 1962 in Scranton, Pennsylvania, as Thrift D Discount Center, the company underwent a metamorphosis and adopted its present name in 1968. Presently, Rite Aid stands as the third-largest drugstore chain in the United States, with a network of over 2,000 stores. In 2022, it ranked 148th in the Fortune 500. Following several years of substantial growth, Rite Aid went public in 1968 and was traded on the New York Stock Exchange under the ticker symbol RAD. However, in October 2023, the company encountered significant challenges, filing for Chapter 11 bankruptcy due to a substantial debt burden and numerous lawsuits alleging its involvement in the opioid crisis.

Alex Grass, who married into the Lehrman family of Harrisburg, Pennsylvania, in the early 1950s, founded the Rite Aid chain in Scranton, Pennsylvania, in September 1962. The initial store was named Thrift D Discount Center. In 1965, the store expanded into five additional states, and in 1968, it went public as Rite Aid. Rite Aid’s journey continued, moving to the New York Stock Exchange in 1970. Just ten years after its first store opened, Rite Aid had grown to operate 267 locations across 10 states. In 1981, Rite Aid solidified its position as the third-largest retail drugstore chain in the country. A significant milestone was reached in 1983 when Rite Aid achieved a sales milestone of $1 billion. To expand its holdings, Rite Aid made a 420-store acquisition along the east coast, bringing its total to over 2,000 locations. In 1984, the chain further expanded into Michigan, acquiring Grand Rapids-based Muir Drug and Remes Drug, along with Lippert Pharmacy of Lowell and Herrlich Drug of Flint. A year later, Rite Aid opened stores in Lansing, Michigan, through the acquisition of State Vitamin. Expansion into Ohio began in 1987 with the acquisition of Cleveland-based Gray Drug. Among the companies acquired was Baltimore, Maryland’s Read’s Drug Store. On April 10, 1989, Rite Aid acquired Peoples Drug’s 114-unit Lane Drug of Ohio. In 1994, Rite Aid acquired twenty-four Hook’s Drug Stores stores, selling nine of them to Perry Drug Stores, a Michigan-based pharmacy chain. In the subsequent year, Rite Aid acquired Perry, expanding its presence in Metro Detroit and Michigan for the first time. In 1996, Rite Aid acquired Thrifty PayLess, a prominent West Coast chain with 1,000 stores. This acquisition included the Northwest-based Bi-Mart membership discount stores, which were subsequently sold in 1998. To further expand its presence in the Gulf Coast region, Rite Aid acquired Harco, Inc. and K&B, Inc.

During the 1990s, Rite Aid partnered with Carl Paladino’s Ellicott Development Co. to enhance its presence in upstate New York. However, in the late 1990s, Rite Aid encountered financial challenges, resulting in a substantial decline in its stock price from $30 to $4.40. Amidst this crisis, Mary Sammons, formerly of Fred Meyer, was appointed President/COO by Leonard Green, of Leonard Green & Partners. Sammons’ leadership continued, and she eventually assumed the role of CEO in 2003. In July 2001, Rite Aid proactively took action by agreeing to enhance its pharmacy complaint process through the implementation of a new program to address consumer concerns.

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