Since the 1970s, the 24-hour Rite Aid at 300 North Canon Drive has been a cherished community institution that has served generations of residents. Beyond its role as a pharmacy, the location has been a beloved neighborhood hub where people of all ages gathered for affordable Thrifty Ice Cream, picked up everyday essentials, stocked up on school supplies, and a date location for many local teens. For residents, the potential loss of this familiar fixture underscores the emotional impact of losing a place that is more than just a store—it is part of the community’s daily rhythm.
Rite Aid filed for Chapter 11 in 2023 and emerged from a financial restructuring process last September, but the company has continued to face significant challenges. According to a May 5 letter addressed to pharmacy benefit managers from Owen McMahon, Group Vice President of Enterprise Pharmaceutical Purchasing at Rite Aid, “These challenges have only intensified as a result of the rapidly evolving retail and healthcare landscapes in which Rite Aid operates.”
On that same day, the chain once again filed for Chapter 11 bankruptcy protection. Many locations will be shuttered nationwide, but the Canon Drive location was not listed in its recent store closure list as of a May 9 filing.
Zach Zalben, a commercial real estate developer who owns many pharmacy locations, tells the Courier that the Canon Drive location is likely in the 10 ten highest pharmacy sales (rumored to be in the $25 million range) of any retail pharmacy in the United States.
The property on which Rite Aid sits is owned by the Charles Company, a West Hollywood-based commercial and residential real estate development firm run by Mark and Arman Gabay. The 24,553-square-foot brick structure was built in 1967 as a retail pharmacy and a Crown Books, for those who remember. According to documents reviewed by the Courier, Rite Aid’s lease expires at the end of 2025, with an option to extend for an additional five years.
“If they don’t have that many years left on the lease, what will happen is that the landlord will be the one who really has the opportunity to call the shots,” commercial real estate agent Richard Rizika told the Courier. “What often happens is someone will come in, like a CVS or Walgreens, and say, ‘I agree to go ahead and take that over, as long as you give me the time to negotiate with the landlord to get a longer lease term.’”
“I think the landlord and the creditors of Rite Aid should come up with a collaboration where both the fee simple owner and the leaseholder, Rite Aid, win,” another prominent Beverly Hills developer told the Courier. “It probably should involve the developer just paying Rite Aid to walk away from their below-market lease so they can put a worthwhile development there. I think they’re keeping the Canon location in the near term, and because it’s such a good lease and such a good store, I think this is one of very few Rite Aids that survive.”
Rite Aid has notified customers that most of the stores slated for closure will stay open for at least the next few months. With many of their locations, Rite Aid is looking to sell its prescriptions, pharmacy front-end inventory, and other assets to new owners. For the time being, they will continue to offer pharmacy services, but the company stated it is working to ensure a “smooth transfer of customer prescriptions to other pharmacies.”
Rite Aid has not responded to requests for an official comment about the Canon Drive location. But, “Alice,” a shift supervisor at the location who did not want to provide her last name, told the Courier, “It’s a roller coaster …“We know that they’re all closing but we don’t know exactly when.”
