The pharmacy and drugstore retail sector has faced economic issues over the last three years that have resulted in several retailers closing hundreds of stores.
Drugstore chain CVS in 2021 revealed it would close 900 of its nearly 9,900 stores to reduce costs and cut losses, closing 300 locations each year in 2022, 2023, and 2024.
The company expanded its closings further in 2025, revealing in its annual report in February that it would close 271 more stores this year.
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Walgreens, which operates about 8,600 stores with 6,000 profitable locations, evaluated 2,000 stores for potential closure and identified 1,200 locations to shutter, with 500 set to close in fiscal year 2025.
In some cases, pharmacy retailers filed for bankruptcy.
The most significant bankruptcy filing among pharmacy chains this year was Rite Aid, whose surviving entity, New Rite Aid LLC, filed for Chapter 11 protection on behalf of the retailer a second time on May 5, 2025, and began closing all of its stores.
After filing 17 store closing notices, Rite Aid has designated a total of 1,261 stores for closing as it liquidates its chain of stores.
Doctor’s Orders Pharmacy files bankruptcy over litigation
The parent company of another popular drugstore chain, Doctor’s Orders Pharmacy, filed for Chapter 11 bankruptcy on July 21, facing a breach of contract lawsuit in Jefferson Hospital Association Inc. v. Whitehall Pharmacy in Jefferson County (Ark.) Circuit Court
Doctor’s Orders Pharmacy provides long-term care services to licensed facilities, as well as prescription refills and transfers, and immunizations.
The pharmacy offers over-the-counter products, such as pain medication, cold and allergy medication, vitamins and supplements, oral health, feminine hygiene, first aid, cosmetics, school and office supplies, infant care, haircare, shower and bath, and sunscreen and bug spray products.
Doctor’s Orders Pharmacy products:
- Pain medication.
- Cold and allergy medication.
- Vitamins and supplements.
- Oral health.
- Feminine hygiene.
- First aid. Cosmetics.
- School and office supplies.
- Infant care.
- Haircare.
- Shower and bath.
- Sunscreen.
- Bug spray products.
The pharmacy competes in both Pine Bluff and White Hall, Ark., for business against CVS, as the giant drugstore chain has store locations in both cities.
Partners Pharmacy Services filed for Chapter 11 bankruptcy to sell its assets.
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Partners Pharmacy Services files for bankruptcy to sell assets
Finally, long-term care facility pharmacy provider Partners Pharmacy Services LLC and 13 affiliates filed for Chapter 11 protection, seeking a sale of their assets to stalking-horse bidder CS One LLC with a $50.7 million credit bid in a proposed bankruptcy sale..
The stalking horse is owned by long-term care operator CareOne Management LLC, also an affiliate of the debtor.
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The Springfield, N.J., debtor is also seeking approval of up to $6.5 million in debtor-in-possession financing from its stalking-horse, CS One.
The debtor filed its petition in the U.S. Bankruptcy Court for the Southern District of Texas on Aug. 13, listing $1 million to $10 million in assets and $10 million to $50 million in liabilities.
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The debtor’s largest unsecured creditors include vendor Cardinal Health, owed over $19 million; McKesson Corp., owed over $16.9 million; and StatimRx LLC, owed over $3.7 million.
The debtor filed its petition facing mounting challenges from industry headwinds, including the Covid-19 pandemic, inflation, changes to Medicare, declining reimbursement rates, and unfavorable industry consolidation, accoding to a declaration by Chief Restructuring Officer Ronald M. Winters.
Partners Pharmacy Services’ economic challenges:
- The Covid-19 pandemic.
- Inflation.
- Changes to Medicare.
- Declining reimbursement rates.
- Unfavorable industry consolidation.
The company faced severe economic problems after accruing a $29 million balance with Cardinal Health on pharmaceutical purchases by November 2022.
Cardinal changed the payment conditions to cash on delivery for all future orders, which strained the company’s financial situation. Partners was unable to generate sufficient cash flow to satisfy daily payments of $500,000.
Partners lost significant business and was forced to restructure and downsize its operations. Attempts to sell the company’s assets fell through in April and early August 2025, forcing the debtor to file Chapter 11 bankruptcy to sell the company.
Partners Pharmacy was one of top 3 U.S. pharmacy companies
Partners Pharmacy was established in 1998 and grew to one of the three largest long-term care pharmacy companies in the U.S., serving 48,000 residents in 500 long-term care, skilled nursing, assisted-living, long-term acute care, and institutional facilities in 16 states and Washington, D.C.
Today, the pharmacy provides services to about 17,000 residents through in-house pharmacies at long-term care facility locations in seven states.
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