A BELOVED ice cream brand sold at Rite Aid is in jeopardy after the pharmacy chain’s second bankruptcy filing earlier this month.
Consumers will soon no longer be able to get their favorite flavors.
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Part of the enjoyment for some who frequented Rite Aid for prescriptions or other essentials was coming across the Thrifty Ice Cream counter.
Thrifty Ice Cream was founded in 1940 in Southern California, where it produced the treat for the soda fountains at Thrifty Drug Store.
It quickly became a popular staple and was continued by Rite Aid ever since it acquired Thrifty Drug Stores in 1996.
At least 500 of Rite Aid’s pharmacies currently have Thrifty Ice Cream counters inside, selling its signature cube-shaped version of the frozen treat in a variety of unique flavors.
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Given Rite Aid’s bankruptcy woes, those 500 will soon be wiped off the map permanently.
There’s also no possible way the Thrifty Ice Cream counters could be kept and bought by retailers that would purchase Rite Aid’s closing locations, as it cannot be sold as a separate entity, per The Street.
It’s required that they shutter as it sells products under Rite Aid’s discretion.
However, several Thrifty Ice Cream counters are not owned by Rite Aid and have been franchised.
STAYING ALIVE
Customers can still visit some of the stand-alone counters in several states.
Thrifty Ice Cream is also sold in packaged individual tubs.
“You can find Thrifty ice cream in the freezer section of your favorite retailers, like Rite Aid, Albertsons, Vons and more,” the company’s website reads.
“You can also find it at scoop counters across California, Arizona, and a growing number of regions in the US and Mexico.”
The future for Thrifty Ice Cream also remains unclear.
Thrifty Ice Cream is being sold as an asset in the bankruptcy proceedings.
How does bankruptcy work?
Bankruptcy is a specific legal process that helps companies eliminate debt they can’t repay.
The process allows businesses to start fresh and gain access to new credit.
Supervised by federal courts, bankruptcies allow a company to sell off its assets more easily to pay off creditors, according toInvestopedia.
Chapter 11, a common process for companies, is used to restructure a business with the goal of remaining open – even if it means selling off most of the company’s properties.
Chapter 7, on the other hand, sells all of a company’s assets, putting it out of business.
Chapter 15, alternatively, allows for collaboration between American and foreign courts to conduct bankruptcy proceedings with “parties of interest involving more than one country,” per the United States Courts.
Whoever the buyer is could choose to keep the brand operational and sell pre-packaged ice cream to retailers or open more counters.
The buyer could also change it entirely.
UPHILL BATTLE
Rite Aid couldn’t recover after its first bankruptcy in October 2023.
At the time, it had accrued about $8.6 billion in debt and would shed that considerably to around $2 billion by the time it emerged in September 2024.
It also closed over 800 stores.
Pressures in the retail healthcare sector continued to batter the company since then, and it faced continued competition from giants like CVS and Walgreens.
Along with some closures, Rite Aid seeks to restructure again.
It also recently confirmed that it would transfer prescriptions to CVS, Walgreens, and other retailers.
Walgreens is also in the middle of closing several locations nationwide in 2025.
