Bankruptcy Forces Ice Cream Chain to Close 500 Locations: The Full Story

Ice cream is more than just a dessert—it’s a nostalgic treat, a reminder of childhood memories, and a taste of summer in every scoop. For millions of Americans, particularly on the West Coast, Thrifty Ice Cream has been part of this story for decades. That’s why the recent headlines announcing that bankruptcy forces ice cream chain to close 500 locations shocked loyal fans. What exactly happened? Why did so many places close? And is this truly the end of Thrifty? Let’s delve into the history, financial struggles, and surprising revival plans for this beloved brand.

The Headlines Explained: Why Bankruptcy Forces Ice Cream Chain to Close 500 Locations

In May 2025, Rite Aid, one of the largest pharmacy chains in America, officially filed for Chapter 11 bankruptcy protection. As part of the restructuring process, Rite Aid announced that hundreds of its stores would be shuttered to reduce debt and operating costs. Unfortunately, many of those stores contained Thrifty Ice Cream counters—the scoop stations tucked inside Rite Aid and formerly PayLess stores that served customers with their signature cylindrical scoops.

As a result, reports confirmed that nearly 500 Thrifty Ice Cream counters would close alongside the parent stores. For long-time fans, it wasn’t just about losing a place to buy medicine; it was about losing a piece of cultural heritage.

A Brief History of Thrifty Ice Cream

To understand why these closures caused such an uproar, you need to appreciate what Thrifty Ice Cream represents.

• Founded in the 1940s in California, Thrifty started as a drugstore brand offering affordable ice cream by the scoop.
• Signature scoop design: Instead of rounded balls, Thrifty’s scoops came in unique cylindrical shapes, thanks to their patented ice cream scooper.
• West Coast tradition: For decades, families in California, Nevada, and neighboring states treated Thrifty as an essential stop during errands. Parents bought prescriptions, and kids eagerly lined up for a scoop of chocolate malted crunch or butter pecan.
• Rite Aid acquisition: In the late 1990s, when Rite Aid acquired the Thrifty/PayLess drugstore chain, it inherited the ice cream brand and expanded distribution.

Thrifty became one of the rare drugstore-based brands that transcended retail—its ice cream tubs were sold in grocery stores, and its scoop counters remained popular well into the 2020s.

Why Bankruptcy Forces Ice Cream Chain to Close 500 Locations

The key reason behind the closures wasn’t the ice cream itself—it was the financial trouble of its parent company, Rite Aid.

Rite Aid’s Struggles Leading to Bankruptcy

1. Debt Load: Rite Aid has carried billions of dollars in debt for years, making it hard to compete with stronger rivals like CVS and Walgreens.
2. Declining Sales: Changing shopping habits, combined with pressure from e-commerce and discount retailers, eroded store performance.
3. Opioid Lawsuits: Rite Aid faced significant legal challenges tied to the opioid crisis, further worsening its financial situation.
4. Operational Costs: Hundreds of underperforming stores drained resources.

By early 2025, Rite Aid had little choice but to file for Chapter 11 bankruptcy. Store closures were a necessary cost-cutting measure, and since Thrifty Ice Cream counters were physically located inside those stores, they also closed.

The Scope of the Closures: Which Locations Were Affected

The announcement that the bankruptcy forces ice cream chain to close 500 locations referred mainly to:

• Rite Aid stores on the West Coast (California, Nevada, Arizona), where Thrifty Scoop counters were located.
• Smaller community outlets where ice cream sales were a local attraction.
• Many counters in suburban shopping plazas had served families for decades.

Notably, the Thrifty Ice Cream brand itself was not eliminated; only the in-store scoop counters tied to the closing of Rite Aid pharmacies were shut down.

What Survives: Packaged Tubs and Grocery Store Distribution

For fans panicking about never tasting Thrifty again, here’s the good news: Thrifty Ice Cream lives on in packaged form.

• Retail Sales: You can still find Thrifty ice cream in gallon tubs at grocery chains like Albertsons, Vons, Ralphs, and other supermarkets.
• Signature Flavors: Favorites such as Chocolate Malted Crunch, Pistachio Nut, and Rainbow Sherbet remain available in frozen aisles.
• Wholesale Distribution: The brand has partnerships with foodservice providers, ensuring restaurants and independent ice cream shops can still buy it in bulk.

So while the scoop counters are vanishing, the ice cream itself is not disappearing from shelves.

Who Bought Thrifty Ice Cream After Bankruptcy?

In a twist that gives fans hope, Thrifty Ice Cream was sold during bankruptcy proceedings to a new owner.

• Buyer: Hilrod Holdings, a company linked to executives from Monster Beverage Corporation.
• Price: Roughly $19.2 million.
• Promise: Preserve Thrifty’s original recipes, signature scoop shape, and nostalgic flavors while expanding modern distribution.

This acquisition suggests that while the bankruptcy forces ice cream chain to close 500 locations, the brand itself is being revived and repositioned for the future.

The Future of Thrifty Ice Cream

With new ownership, the Thrifty brand is expected to undergo a revival:

1. Expanded Retail Presence: Beyond West Coast supermarkets, Hilrod plans to introduce Thrifty nationwide.
2. Modernized Packaging: Expect new designs while keeping the iconic Thrifty logo and retro vibe.
3. Pop-Up Counters or Independent Shops: There’s speculation about standalone Thrifty scoop shops or partnerships with convenience stores.
4. E-commerce Options: Nationwide frozen shipping could bring Thrifty Pints directly to customers’ doors.
5. Seasonal Flavors: To appeal to younger audiences, limited-edition flavors might join the classics.

Customer Reaction: Nostalgia Meets Uncertainty

The news that bankruptcy forces ice cream chain to close 500 locations sparked emotional responses:

• Nostalgia: For many, Thrifty was a childhood memory of after-school treats or family weekend stops.
• Sadness: Fans lamented the loss of their neighborhood scoop counters.
• Hope: The social media buzz surrounding the new ownership suggests that customers are eager to support Thrifty if it returns in a new form.

Lessons From the Closures

The Thrifty story is not unique—it’s a case study in how a beloved legacy brand can be impacted by the financial troubles of its parent company.

• Lesson 1: Brands tied too closely to struggling retailers risk collateral damage.
• Lesson 2: Strong nostalgia and customer loyalty can help a brand survive even after large-scale closures.
• Lesson 3: Strategic acquisitions can breathe new life into heritage products, keeping them alive for future generations.

FAQs About Thrifty Ice Cream Closures

Conclusion: Is Thrifty’s Story Over?

At first glance, the headline that bankruptcy forces ice cream chain to close 500 locations felt like the end of an era. For many, the idea of losing Thrifty Ice Cream evoked sadness and nostalgia. But dig a little deeper, and the picture looks brighter.