Financial distress in the pharmacy and drugstore retail sector over the last three years has resulted in major changes in the industry with major retailers closing hundreds of stores and, in some cases, filing for Chapter 11 bankruptcy.
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 the store closing campaign in 2025, revealing in its annual report in February that it would close 271 more stores this year.
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.
Walgreens Boots Alliance revealed in March that the drugstore chain planned to go private by the end of the year.
Pharmacy chains file for bankruptcy protection
Rite Aid filed for Chapter 11 protection a second time on May 5, 2025, as New Rite Aid LLC, and began closing all of its stores, consisting of about 1,240 locations.
Rite Aid has been winding down its business and has filed 13 notices of store closing locations since May 9, with its most recent filing on July 18, seeking to close 17 more stores, with about 21 stores remaining to close going forward, according to court filings.
Smaller pharmacy chains have faced fierce competition from CVS, Walgreens, and Rite Aid, and several have needed to file Chapter 11 to restructure their businesses to survive.
Eastern Kentucky drugstore chain Rx Discount Pharmacy, with about seven pharmacy and healthcare businesses, on May 1, 2024, filed for Chapter 11 bankruptcy reorganization in the U.S. Bankruptcy Court for the Eastern District of Kentucky in London.
Months later, CL Cressler Inc., the owner of seven Medicine Shoppe Pharmacy stores located in Pennsylvania and New York, on Aug. 29, 2024, filed for Chapter 11 bankruptcy to reorganize its debts.
Doctor’s Orders Pharmacy chain files for bankruptcyÂ
And now, the parent company of popular drugstore chain Doctor’s Orders Pharmacy filed for Chapter 11 bankruptcy, facing a breach of contract lawsuit.
Whitehall Pharmacy LLC filed its petition on July 21 in the U.S. Bankruptcy Court for the Eastern District of Arkansas, listing $1 million to $10 million in assets and liabilities.
Related: Home Depot rival files Chapter 11 bankruptcy in distress
The Pine Bluff, Ark.-based drugstore chain, which was established in 2009, operates two locations in Pine Bluff, and one each in Star City and White Hall, Ark.
The parent company has a pending breach of contract lawsuit in Jefferson Hospital Association Inc. v. Whitehall Pharmacy in the Jefferson County (Ark.) Circuit Court, RK Consultants reported. The petition did not mention the status of the case.
The breach of contract case is subject to an automatic stay, as all litigation is subject to an automatic stay while a bankruptcy case proceeds.
Doctor’s Orders Pharmacy provides prescription refills and transfers, immunizations, and long-term care services to licensed facilities.
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.
The drugstore also sells greeting cards, gifts, toys, gift cards, scarves, purses, tote bags, home decor, and other special occasion items.
