Bad news for ice cream lovers: This ice cream chain has filed for bankruptcy and will close over 500 stores

It’s been a distressing few years for thousands of restaurants and retailers across the United States and beyond. Many only just survived the Covid pandemic, others have down-scaled and sadly, some have gone forever - closed never to return.

In retail, we’ve seen numerous closures - 7,327 stores pulled down the shutters for the final time in the US in 2024 - an 57.8% increase over the previous year. And the food service industry has also been hit hard with Subway, Jack in the Box, Burger King and Sticky’s all reporting closures of locations.

Now another popular brand faces an uncertain future and could even disappear from the high street altogether.

Ice creams from your local drugstore

Thrifty Ice Cream began dishing out its famous scoops in downtown Los Angeles in 1940 with the company moving to larger premises in El Monte in 1976.

At the time, ice cream counters could be found in many US drugstores and some - such as Rite Aid, owned their own specific brands.

“Angelenos flocked to the flagship Thrifty Drug Store in downtown Los Angeles to sample ice cream from the soda fountain,” the company’s history notes explain. “The high-quality, small-batch ice cream even snagged awards from the LA County Fair. By the 1970s, Thrifty ice cream had attained cult status along the West Coast, with significant celebrity shoutouts”.

Thrifty is known for its innovative flavors such as Raspberry Cheesecake, Pecan Praline, Chocolate Peanut Butter Cup and Black Cherry.

Over eight decades on, Rite Aid, who acquired Thrifty Drug Stores in 1996, is mired in financial problems and has filed for Chapter 11 bankruptcy protection. Dozens of Rite Aid drugstores have already closed and more are set to follow.

500 Thrifty Ice Cream counters to close

Around 500 Thrifty Ice Cream counters located inside Rite Aid stores will close as part of the bankruptcy. And as the locations are inside the premises, they cannot be sold as a separate asset.

Of course, it doesn’t mean that Thrifty will vanish forever - a new buyer could continue to sell the brand in their ubiquitous 3-gallon tubs through online retailers or grocery chains. There is also a possibility that an investor could take over the El Monte plant. But for now, ice cream fans face an anxious wait to see how the situation develops.

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