Thrifty Ice Cream to Close 500 Stores as Rite Aid Faces Bankruptcy

In a blow to ice cream lovers across the United States, Thrifty Ice Cream, a beloved brand with roots dating back to 1940, is set to close approximately 500 of its ice cream counters located within Rite Aid pharmacies. The closures come as Rite Aid, the parent company of Thrifty Ice Cream, navigates its second Chapter 11 bankruptcy filing in less than two years. This development has sparked widespread disappointment among fans of the iconic brand, known for its unique square-shaped scoops and nostalgic charm. While the future of Thrifty Ice Cream remains uncertain, there is hope that a buyer may step in to preserve this cherished piece of American culture.

A Legacy of Sweet Memories

Thrifty Ice Cream began its journey in 1940 in West Hollywood, California, where it was first served at a Thrifty Drug Store soda fountain in downtown Los Angeles. The brand quickly became a West Coast staple, earning a loyal following for its high-quality, small-batch ice cream and distinctive flavors like Sriracha Swirl and Butter Pecan. By the 1970s, Thrifty had achieved cult status, with its signature square scoops—created using a patented scooper—becoming a hallmark of the brand. Over the decades, Thrifty expanded its reach, with its ice cream available in over 2,300 grocery stores and chain retailers across the U.S., in addition to the counters in Rite Aid pharmacies.

Rite Aid acquired Thrifty Drug Stores in 1996, integrating the ice cream counters into approximately 500 of its pharmacies, primarily on the West Coast. For many, a trip to Rite Aid meant more than picking up prescriptions—it was an opportunity to indulge in a scoop of Thrifty’s famous ice cream while waiting. The brand’s nostalgic appeal and affordable prices made it a favorite among families, with generations sharing memories of enjoying its unique, hockey puck-shaped cones.

Rite Aid’s Financial Struggles Impact Thrifty

The decision to close the 500 Thrifty Ice Cream counters is a direct result of Rite Aid’s ongoing financial difficulties. The pharmacy chain filed for Chapter 11 bankruptcy in early May 2025, marking its second bankruptcy filing since October 2023. According to reports from The Street, Rite Aid plans to close hundreds of its roughly 1,200 remaining stores as part of its restructuring efforts to manage debts and address operational inefficiencies. As these stores close, the Thrifty Ice Cream counters located within them will also shutter, as they cannot be sold as separate entities. The Street

Rite Aid’s financial woes are part of a broader trend affecting drugstore chains across the U.S. Retailers like CVS and Walgreens have also announced store closures in recent years, citing challenges such as declining foot traffic and increased competition from online pharmacies. Rite Aid’s first bankruptcy filing in 2023 allowed the company to reduce its debt by $2 billion and close over 800 stores. However, continued losses—reportedly $750 million in the previous financial year—have pushed the company into a second bankruptcy. As part of this process, Rite Aid is auctioning off assets, including its Thrifty Ice Cream business and the brand’s El Monte, California, factory. Newsweek

What’s Next for Thrifty Ice Cream?

While the closure of the 500 Rite Aid counters is a significant setback, it does not necessarily spell the end for Thrifty Ice Cream. The brand’s intellectual property and factory are up for auction, with a bidding deadline set for June 13, 2025, and an auction date scheduled for June 20. A potential buyer could acquire Thrifty and continue distributing its ice cream through grocery stores, standalone counters, or other retail channels. Thrifty’s pre-packaged pints and three-gallon tubs are already sold in major chains like Albertsons and Vons, and these distribution channels could remain viable even after the Rite Aid closures.

Additionally, some Thrifty Ice Cream counters operate independently of Rite Aid, as franchised locations. These standalone counters, along with those in Mexico, are expected to remain open, offering a glimmer of hope for fans. However, the loss of the Rite Aid counters will significantly reduce Thrifty’s presence, particularly in communities where the pharmacy was the primary location to enjoy its ice cream.

Evan Lovett, host of the “L.A. in a Minute” video series, expressed optimism about Thrifty’s future in a recent post on X, stating, “If history is any guide, Thrifty Ice Cream is going to be scooping up smiles for years to come, just maybe not at your local Rite Aid.” Social media has been abuzz with similar sentiments, with fans sharing nostalgic memories and urging potential buyers to save the brand. Time Out

The Cultural Impact of Thrifty’s Closures

The closure of Thrifty Ice Cream counters represents more than just a business decision—it’s a loss of a cultural touchstone for many Americans, particularly on the West Coast. For decades, Thrifty has been a place where families created traditions, whether it was grabbing a cone after a doctor’s visit or picking up a tub for a special occasion. The brand’s unique scooping method, which produces a cylindrical, square-topped scoop, has been a point of fascination and pride for fans. Its quirky flavors and affordable prices—often cited as a bargain compared to premium ice cream chains—have only added to its charm.

The closures also highlight the broader challenges facing brick-and-mortar retail in the U.S. The post-pandemic economic landscape has been tough on traditional retailers, with many struggling to adapt to changing consumer habits. The rise of e-commerce, coupled with inflation and reduced discretionary spending, has led to a wave of store closures across various sectors. Rite Aid’s decision to close stores and sell assets is a stark reminder of these challenges, and Thrifty Ice Cream’s counters are collateral damage in this larger struggle.

Community Reactions and Nostalgia

The announcement of the closures has sparked an outpouring of nostalgia on social media platforms like X, where fans have shared stories of their favorite Thrifty flavors and memories of visiting Rite Aid counters as children. One user wrote, “Thrifty Ice Cream at Rite Aid was my childhood. Those square scoops were the best part of any pharmacy trip.” Another user pleaded, “Please, someone buy Thrifty Ice Cream. It’s a West Coast thing!” These reactions underscore the deep emotional connection many have with the brand.

Local influencers and community members have also weighed in, with some expressing hope that a buyer will step in to preserve Thrifty’s legacy. The brand’s history of earning awards, such as those from the L.A. County Fair, and receiving shoutouts from Hollywood celebrities has only added to its cultural significance. For many, Thrifty is more than just an ice cream brand—it’s a symbol of simpler times and shared experiences.

Looking Ahead

As Rite Aid moves forward with its bankruptcy proceedings, the fate of Thrifty Ice Cream hangs in the balance. The auction of the brand’s assets presents an opportunity for a new owner to revive and potentially expand Thrifty’s reach. Whether through continued distribution in grocery stores or the opening of new standalone counters, there is potential for Thrifty to continue delighting ice cream lovers across the country.

For now, fans can still find Thrifty Ice Cream in select grocery stores and independent counters, but the loss of the 500 Rite Aid locations will leave a void in many communities. As the June 20 auction approaches, ice cream enthusiasts will be watching closely, hoping that this iconic brand finds a new home and continues to serve its signature square scoops for generations to come.

In the meantime, those who grew up with Thrifty Ice Cream are left to cherish their memories and perhaps stock up on a few pints from their local grocery store. The story of Thrifty Ice Cream is far from over, but its next chapter will depend on the outcome of Rite Aid’s restructuring and the vision of its potential new owners.

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