Introduction: A Beloved Ice Cream Brand Faces a Major Blow
For decades, Thrifty Ice Cream has been more than just a dessert; it’s been a West Coast cultural staple. With its iconic cylindrical scoops, nostalgic flavors, and reputation for affordability, generations of families have grown up grabbing a Thrifty cone from their local Rite Aid.
That’s why the headline “Bankruptcy forces ice cream chain to close 500 locations” shook loyal customers across the U.S.
In 2025, Rite Aid’s second Chapter 11 bankruptcy filing triggered a massive wave of store closures, automatically shutting down around 500 in-store Thrifty Ice Cream counters across the country. This wasn’t just a corporate restructuring — it marked the end of a cherished American ritual.
Below is the most complete, updated, and deeply researched explanation of what happened, why it happened, and what the future looks like for Thrifty Ice Cream.
What Ice Cream Chain Is Closing 500 Locations?
The closures are happening at the Thrifty Ice Cream scoop counters inside Rite Aid stores.
These are not standalone ice cream shops — they are in-store counters built directly into Rite Aid pharmacies. When a Rite Aid closes, the Thrifty counter automatically closes with it.
Recent reports from Newsweek, MSN, Yahoo Finance, and The Independent confirm:
Approximately 500 Thrifty Ice Cream counters will shut down due to Rite Aid’s bankruptcy closures.
These closures mostly impact the West Coast, where Thrifty has been a beloved fixture since the 1940s.
Why Bankruptcy Forced These 500 Closures
To understand this, you need to know what happened to Rite Aid — Thrifty’s parent company.
Rite Aid Filed for Chapter 11 Bankruptcy… Again
Rite Aid first filed for Chapter 11 bankruptcy in 2023 amid:
- Mounting opioid-related lawsuits
- Billions in long-term debt
- Declining sales
- Competition from CVS, Walgreens, Walmart & online pharmacies
- Store theft and operating losses
- Shifting consumer behavior toward online prescriptions
The restructuring did little to stop the bleeding.
In May 2025, Rite Aid filed for Chapter 11 a second time — informally known as a “Chapter 22” bankruptcy. This time, the company began shuttering most of its remaining stores.
Why Thrifty Counters Cannot Stay Open
Thrifty scoop counters are physically built into Rite Aid stores.
They:
- Do not have separate leases
- Cannot operate independently
- Cannot be sold off individually as assets
So when Rite Aid closes a store, the Thrifty counter closes too.
It’s not the ice cream business that failed — it’s the pharmacy chain that dragged the counters down with it.
A Little History: Why Thrifty Ice Cream Matters So Much
Thrifty Ice Cream isn’t just a brand — it’s a California childhood memory, a West Coast legacy.
🍨 1940: The Beginning
First sold in Los Angeles drugstores, Thrifty quickly became famous for:
- It’s cylindrical, machine-cut scoop
- Creamy, award-winning flavors
- Remarkably low prices
Flavors like Chocolate Malted Krunch, Butter Pecan, and Mint Chip remain iconic today.
🛒 1996: Rite Aid Acquires Thrifty
When Rite Aid purchased the brand, they kept:
- The original recipes
- The signature scoop shape
- The El Monte, California manufacturing plant
For decades, a trip to Rite Aid for school supplies or prescriptions almost always included a Thrifty scoop.
🏆 A Cult Favorite
Thrifty won multiple gold medals at state fairs, and social media is filled with people reminiscing about:
- After-school cones
- Birthday outings
- Late-night ice cream runs
That’s why the closures feel emotional — it’s not just a counter shutting down; it’s a piece of childhood disappearing.
The Reality: Are 500 Thrifty Locations Really Closing?
Yes — but with important context.
- These are 500 counters, not standalone shops.
- They operated inside Rite Aid stores only.
- They’re closing because Rite Aid is shutting or selling hundreds of its stores.
This number is consistent across major reports from:
- MSN
- Newsweek
- Yahoo Finance
- The Street
- The Independent
So the headline is accurate — but the ice cream itself isn’t disappearing entirely.
Is Thrifty Ice Cream Going Out of Business?
No. And this is the twist many people don’t know.
While the scoop counters are closing…
🎉 Thrifty Ice Cream Has Been Sold to a New Owner
As part of the bankruptcy proceedings, the Thrifty brand was sold to Hilrod Holdings, an investment group connected to Monster Beverage executives.
✔️ What the New Owners Plan to Do
According to business filings and news sources:
- Keep the original recipes
- Keep the famous cylindrical scoop
- Modernize the brand
- Expand distribution across the U.S.
- Increase presence in grocery chains & convenience stores
- Explore new retail partnerships
This means Thrifty Ice Cream is NOT dead — it’s entering a new era.
Why Retail & Pharmacy Chains Are Struggling (The Bigger Picture)
Thrifty’s closures reflect a much larger problem:
1. 🧾 Historic Debt
Rite Aid carried billions in long-term debt for years.
2. ⚖️ Opioid Lawsuits
Thousands of claims accelerated financial collapse.
3. 🛒 Consumer Shifts
Online ordering of prescriptions, snacks, and daily essentials dramatically changed foot traffic.
4. 🏚️ Oversaturated Pharmacy Market
CVS and Walgreens dominate — smaller chains struggle to compete.
5. 📦 E-commerce dominance
People now buy:
- Ice cream
- Medicine
- Household items
…through apps instead of local stores.
6. 🏙️ Community Impact
The closures have created:
- Pharmacy deserts
- Fewer affordable food options
- Loss of familiar community spots
Thrifty simply became collateral damage in the downfall of a much larger company.
💔 What Customers Are Saying: A Wave of Nostalgia
Across social media, thousands of fans are expressing:
😢 Emotional Loss
Many say Thrifty scoops were part of their childhood memories.
💸 Affordability
Thrifty stayed cheap even when other brands got expensive.
🍦 Unique Scoop Shape
The machine-cut cylinder has a huge nostalgic following.
🏡 Community Connection
Rite Aid + Thrifty was a staple in small towns.
The closures are more than an inconvenience — they symbolize the disappearance of local, affordable joy.
Can You Still Buy Thrifty Ice Cream?
YES.
Even with the 500 closures, you can still find Thrifty Ice Cream at:
🛒 Grocery Stores
Many supermarkets carry Thrifty-branded tubs.
🧊 Convenience Stores
Gas stations and local shops often stock them.
🍦 Independent Scoop Shops
Some franchise or independently owned Thrifty counters outside Rite Aid will continue to operate.
📦 Upcoming Retail Partners
The new owners plan to expand distribution nationwide.
In fact, 2025–2026 may be the first time Thrifty Ice Cream becomes available outside the West Coast in a meaningful way.
Key Takeaways
- 500 Thrifty Ice Cream counters are closing, all located inside Rite Aid stores.
- Rite Aid’s Chapter 11 bankruptcy is the direct cause.
- Thrifty Ice Cream is not shutting down — only the scoop counters.
- The brand has been sold to new owners who plan to expand distribution.
- Customers still can (and will be able to) buy Thrifty Ice Cream in tubs from many retailers.
- The closures highlight bigger issues in retail, pharmacy, and shifting consumer behavior.
Frequently Asked Questions (FAQs)
1. Which ice cream chain is closing 500 locations?
Thrifty Ice Cream is closing approximately 500 in-store scoop counters located inside Rite Aid pharmacies.
2. Why are these locations closing?
Rite Aid filed for Chapter 11 bankruptcy and is shutting or selling a large number of its stores.
3. Is Thrifty Ice Cream going out of business?
No. Only the counters are closing. The ice cream brand has been sold, preserved, and will continue.
4. Can I still buy Thrifty Ice Cream?
Yes — in supermarkets, convenience stores, and some independent scoop shops.
5. Will Thrifty open new locations?
Possibly. The new owners have hinted at expansion, new partnerships, and wider distribution.
