Forget Rite Aid, Arizona pharmacy brand files Chapter 11

In 2025, Rite Aid closed all its locations as part of a greater trend of pharmacy closures.

"About a third of America's pharmacies have closed since 2010, amounting to an 'unprecedented decline' in neighborhood drug stores, a new study finds. The drop began in 2018, primarily driven by store closures among chain pharmacies during a period of consolidation in the industry, researchers found," Powers Health reported.

The shutdowns are impacting the ability to provide needed medical services.

"At the same time many states are making efforts to expand the scope of pharmacy services beyond dispensing drugs to include the provision of preventive and emergency care, we found that there are -- for the first time for at least a decade -- fewer pharmacies available to provide them," said senior researcher Dima Mazen Qato, a senior scholar at the University of Southern California (USC) Schaeffer Center for Health Policy & Economics.

• Starting in 2018, large pharmacy chains began to merge and shut down stores deemed not profitable enough.
• These mergers not only caused a reduction in chain pharmacies, but also accelerated the closure of independent neighborhood pharmacies, researchers found.
• Independent pharmacies were more than twice as likely as chain pharmacies to close, edged out by the chains' powerful pharmacy benefit managers, researchers said.

"A key factor contributing to the higher risk of closure for independent pharmacies may be their frequent exclusion from preferred pharmacy networks," said lead researcher Jenny Guadamuz, an assistant professor at the University of California, Berkeley School of Public Health.

The trend of local pharmacy chains experiencing problems has continued into 2026 with Arizona's Uptown Pharmacy closing out 2025 with a Chapter 11 bankruptcy filing.

Another pharmacy chain files Chapter 11 bankruptcy

"Uptown Pharmacy of Kingman, Inc., a Golden Valley, AZ-based independent retail pharmacy, filed for chapter 11 protection on December 31, 2025, in the District of Arizona. The company operates under several trade names including Uptown Drug and Uptown Drug Golden Valley, serving as a critical healthcare provider for rural populations in Mohave County," RK Consultants reported on X, the former Twitter.

Incorporated in 2003, the pharmacy provides prescription medications, over-the-counter health products, immunizations, and durable medical equipment. The business operates a single retail location and provides specialized community health services, focusing on localized patient care for a region with limited pharmacy options.

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"The filing followed mounting litigation pressure, specifically a lawsuit filed by pharmaceutical wholesaler HealthSource Distributors LLC in early 2025 involving unpaid inventory costs. The pharmacy indicated an intent to restructure its debt or facilitate an asset sale while attempting to maintain service continuity for the local community," according to the PacerMonitor filing.

Local residents had mixed reactions to Uptown Pharmacy. Some praised the staff for being friendly and knowledgeable, while others slammed the store for poor service and long waits.

"Absolute worst customer service in America," one reviewer raged.

"Very friendly and fast service. They explain what the medication is for and what side effects you may experience," another said.

The reviews, which were posted on Yelp highlight the pharmacy's divided reputation, showing why its closure leaves a real impact on the community it served.

Uptown Pharmacy Chapter 11 bankruptcy details

• Chapter 11 filing:Uptown Pharmacy of Kingman, Inc., a retail pharmacy based in Kingman/Golden Valley, Arizona, filed for Chapter 11 bankruptcy protection on December 31, 2025, in U.S. Bankruptcy Court for the District of Arizona, according to Bankruptcy Observer.
• Case details: The voluntary filing was assigned Case No. 0:25‑bk‑12678 and is being overseen by Judge Paul Sala, reported PacerMonitor
• Multiple d/b/a names: Court records show the debtor does business under related names such as Uptown Drug Golden Valley and Uptown United Drug, shared Bankruptcy Observer.
• Bankruptcy timeline: A 341 meeting of creditors is scheduled for February 12, 2026, which is a typical early step in Chapter 11 cases, according to Bankruptcy Observer.
• No detailed public figures yet: As of early January 2026, there are no publicly filed details on the company's assets, liabilities, or restructuring plan available in free databases. These typically emerge later in the case docket.

2025 was a bleak year for pharmacies

"Pharmacy chains used to really be the heart of communities," GlobalData retail managing director Neil Saunders told CNBC. "They're the place you went for prescriptions, but they're also the place that you went to buy general goods. And really over the past 20 or so years, that has changed dramatically."

• Rite Aid completes nationwide closures: After filing Chapter 11 in May 2025, the longtime U.S. pharmacy chain closed all of its remaining stores across the country, marking the end of its operations, according to Bisnow.
• Walgreens downsizing footprints: Walgreens has planned closures of roughly 1,200 locations in the U.S. over 2025-2027 as part of restructuring efforts, reported EMARKETER.
• CVS footprint consolidation: CVS plans to close about 270 stores in 2025, continuing a multi‑year downsizing trend in retail pharmacy footprints, according to Retail TouchPoints.

Related: US' second-oldest department store chain considers Chapter 11

TheStreet

This story was originally published January 1, 2026 at 8:33 AM.