Iconic Ice Cream Brand Faces Major Setback Amid Rite Aid Store Closures
In a major development impacting ice cream lovers across the U.S., Thrifty Ice Cream is set to close 500 in-store locations following Rite Aid’s latest bankruptcy filing. The closures mark a turning point for the beloved brand known for its signature circular scoops and nostalgic appeal.
Why Are Thrifty Ice Cream Counters Closing?
The closures come as Rite Aid, one of America’s largest pharmacy chains, continues to struggle financially. On May 2025, the company filed for Chapter 11 bankruptcy for the second time in under a year. This move affects hundreds of its approximately 1,200 stores nationwide.
As part of its restructuring plan, Rite Aid will shut down all Thrifty Ice Cream counters located inside its stores. That’s nearly 500 locations where customers have long enjoyed the West Coast favorite.
Will Thrifty Ice Cream Still Be Available?
Yes, but with limitations.
While the in-store counters are closing, Thrifty Ice Cream will still be sold in:
- Standalone ice cream shops
- Grocery chains
- Independent retailers
However, the closures represent a significant reduction in the brand’s physical footprint, particularly in California and other western states where the counters have become a cultural staple.
A Look Back: The Rise of Thrifty Ice Cream
Thrifty Ice Cream began its journey in Los Angeles in 1940, offering affordable and high-quality hand-scooped treats. The brand quickly gained a loyal following for its:
- Unique cylinder-shaped scoops
- Affordable prices
- Creamy, nostalgic flavors
In 1996, Rite Aid acquired Thrifty, integrating the brand into its store layout. Over the decades, these ice cream counters became a favorite pit stop for shoppers and families.
What’s Next for Rite Aid and Thrifty Ice Cream?
As part of the bankruptcy proceedings, Rite Aid plans to sell off key assets, including:
- Thrifty Ice Cream brand
- The El Monte, California production facility
This presents an opportunity for a new buyer to acquire and expand the brand across new markets. In fact, there have already been signs of interest from national and regional players looking to keep Thrifty’s legacy alive.
Previous Sale Attempts Fell Through
This isn’t the first time Rite Aid has tried to offload Thrifty Ice Cream. Back in 2018, a deal was nearly finalized with Albertsons, but the agreement collapsed. Now, with renewed financial pressure, a sale seems more likely than ever.
What Does This Mean for Shoppers and Employees?
The closures will have wide-reaching impacts:
- Loss of neighborhood ice cream counters
- Potential layoffs for staff involved in production and retail
- Reduced accessibility to hand-scooped Thrifty flavors
Despite the changes, Rite Aid CEO Matt Schroeder remains optimistic. In a recent statement, he emphasized the company’s commitment to maintaining pharmacy services and preserving as many jobs as possible.
Thrifty Ice Cream’s Legacy May Still Live On
According to Evan Lovett, host of L.A. in a Minute, “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.”
Thrifty’s El Monte plant, where many employees have worked for over 30 years, continues to craft new and exclusive flavors, from Sriracha Swirl to Bacon & Cheddar. The company is known for innovation, tradition, and deep community roots.
Key Takeaways
- 500 Thrifty Ice Cream counters are closing inside Rite Aid stores due to bankruptcy.
- Standalone sales of Thrifty Ice Cream will continue.
- Rite Aid is looking to sell the brand and factory to pay off debt.
- The closures mark the end of an era, but not the end of Thrifty Ice Cream.
What You Can Do Next
Love Thrifty Ice Cream? Here’s how to support the brand during this transition:
- Buy Thrifty Ice Cream at your local grocery store or independent retailer.
- Share your favorite flavors and memories on social media using hashtags like #ThriftyIceCream and #SaveThrifty.
- Stay updated on news about a potential sale or relaunch of the brand.
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