Thrifty Ice Cream chain to close as rite aid shuts over 500 stores nationwide
Rite Aid’s bankruptcy impacts Thrifty Ice Cream scoops sold in-store; brand and factory may still be sold
Thrifty Ice Cream counters inside over 500 Rite Aid locations around the country are shutting down as part of the pharmacy chain's Chapter 11 bankruptcy proceedings. The Thrifty counters are being cut as Rite Aid has entered into Chapter 11 proceedings and wound down store operations and assets.
Although the iconic ice cream brand will be sold at another retailers and stand-alone locations, the store closures are a significant transition for Thrifty, which has long been an operation in the Rite Aid pharmacies on the West Coast dating back to Rite Aid acquiring Thrifty in 1996.
ALSO SEE: Historic San Francisco hardware store to close after 120 years following pandemic and retail shift
Rite Aid bankruptcy puts Thrifty’s future at stake
Rite Aid plans to auction its assets, including the Thrifty Ice Cream business and its manufacturing facility located in El Monte, California. While this includes possibly shutting the stores in Rite Aid's bankruptcy, Thrifty could still survive under new ownership. In 2018, Thrifty nearly sold as part of almighty package of retailer options agreed to by Albertsons, only to have it fall apart.
This is the second bankruptcy Rite Aid has filed in less than a year. It previously filed a Chapter 11 bankruptcy petition in October 2023, which eliminated $2 billion in debt and closed hundreds of stores. The current Chapter 11 filing intends to further restructure the retailer and possibly find national or regional buyers.
Thrifty Ice Cream is an ice cream chain founded in 1940 and with many locations throughout the United States. Photo: Mui Kitchen
Closures begin, but brand could continue elsewhere
Court documents indicate interested buyers must submit offers for assets, such as Thrifty Ice Cream, by Friday. Rite Aid is anticipated to hold sale hearings in late June. Rite Aid is attempting to preserve jobs and pharmacy services in connection with divesting its businesses.
Public reaction has elicited nostalgia for the hand-scooped ice cream. Evan Lovett, L.A. media personality, stated "Thrifty will be scooping up smiles for years to come, just maybe not at your local Rite Aid." CEO Matt Schroeder stated the company is seeing "meaningful interest" in their assets, including Thrifty.
