In a move that has shaken fans and disrupted the frozen dessert industry, Rite Aid’s Chapter 11 bankruptcy filing in 2025 has led to the closure of 500 Thrifty Ice Cream counters across the United States.

Known for their iconic square scoops and deep roots in American nostalgia, these closures mark the end of an era for many communities where the counters served as a sweet symbol of summer and tradition.

While the larger story centers around Rite Aid’s financial woes, the ripple effect on Thrifty Ice Cream has left consumers wondering what’s next for the beloved brand.

Thrifty Ice Cream: A Brief History

Founded in 1940, Thrifty Ice Cream quickly became a staple of American life—especially on the West Coast. Its signature cube-shaped scoops, quirky flavors, and affordable pricing won over generations. In 1996, the brand became part of the Rite Aid portfolio, finding a new home inside thousands of retail pharmacy locations nationwide.

Over time, Thrifty evolved into both an in-store scoop counter and a pre-packaged brand sold across various grocery outlets.

Why Are the Counters Closing?

The root cause of the closures lies in Rite Aid’s second Chapter 11 bankruptcy filing in 2025. The pharmacy giant has been facing long-term financial instability due to declining prescription revenue, lawsuits, and underperformance in its stores.

The latest filing triggered sweeping cost-cutting measures. One of the biggest sacrifices: the Thrifty Ice Cream scoop counters. Operational and legal hurdles made it impossible for Rite Aid to sustain these in-store experiences, especially when the company is looking to offload non-core assets and appease creditors.

The Impact: Stores, Jobs, and Nostalgia

The closures affect 500 locations, most of them located in California and other West Coast states where Thrifty has the deepest legacy.

• Employees: Hundreds of counter workers are facing layoffs.
• Communities: Longtime customers are expressing their dismay on social platforms, sharing stories of childhood visits, after-school treats, and family traditions.

For many, it’s not just about losing an ice cream shop—it’s about losing a piece of their personal history.

What's Next for the Thrifty Brand?

Although the scoop counters are gone, Thrifty Ice Cream isn’t disappearing altogether. Production at its El Monte, California, facility will continue, and the brand will remain available via:

• Packaged cartons in grocery stores
• Independent scoop shops that license the brand

Furthermore, Rite Aid has begun the process of selling Thrifty’s brand assets. Bidders such as Hilrod Holdings have shown interest in acquiring and reviving the standalone retail experience or expanding packaged distribution.

This leaves a glimmer of hope for fans that the brand could see a second act under new ownership.

A Broader Trend in Retail & Food

The collapse of Thrifty’s scoop counters mirrors a wider trend in the food retail space:

• Friendly’s closed dozens of locations after bankruptcy
• Ample Hills Creamery faced its own financial crisis
• Dairy Queen franchises in select regions have also seen cutbacks

Experts say this reflects larger issues—rising operational costs, changing consumer behavior, and supply chain strain. Nostalgic, experiential brands are among the most vulnerable when companies pivot toward digital and cost-saving models.

Conclusion

While the closure of 500 Thrifty Ice Cream counters is a clear consequence of Rite Aid’s financial struggles, it also represents the fragility of beloved brands in turbulent economic times.

Thrifty lives on in grocery aisles and independent shops, but the days of grabbing a cube-shaped scoop while filling a prescription may now be a sweet memory of the past.

With new ownership potentially on the horizon, fans can still hope that Thrifty’s next chapter may taste just as good—if not better.

FAQs

Who is closing 500 ice cream stores?

Rite Aid is closing 500 Thrifty Ice Cream scoop counters due to its 2025 Chapter 11 bankruptcy.

Why is Thrifty Ice Cream affected by Rite Aid’s bankruptcy?

Thrifty is a subsidiary of Rite Aid, and as part of restructuring, non-core assets like the ice cream counters are being shut down.

Can fans still buy Thrifty ice cream?

Yes, Thrifty Ice Cream is still available in packaged form at various grocery stores and through some independent scoop shops.

Will the brand survive in standalone or retail formats?

Possibly. There is interest from buyers to continue or revive the brand under new ownership.