1. The Scoop: What’s Happening to the Ice Cream Counters?
Bankruptcy Forces Ice Cream Chain to Close 500 Locations: A beloved ice cream brand—Thrifty Ice Cream, renowned for its hand-scooped cylindrical cones—is facing a major disruption. Its parent company, Rite Aid, has filed for Chapter 11 bankruptcy, necessitating massive restructuring.
As part of the restructuring, approximately 500 Thrifty in-store scoop counters inside Rite Aid stores are slated for closure. These counters have been cultural staples, particularly in California where Thrifty’s nostalgic charm has endured for over 85 years.
Rite Aid’s financial woes are tied to ongoing legal liabilities, high debt, and repeated bankruptcy filings. The decision to shut down these counters reflects the company’s attempt to streamline operations amid a turbulent retail environment.
2. A Storied Legacy: Understanding Thrifty Ice Cream’s Cultural Significance
Thrifty Ice Cream has been an iconic part of West Coast culture since it began in 1940 as a treat served at Thrifty Drug Store soda fountains. The chain became famous for its flat-topped scoops, offbeat flavors like Chocolate Malted Krunch and bacon cheddar, and near-perfect combo of affordability and nostalgia.
After Rite Aid acquired the Thrifty chain in 1996, it continued serving these ice cream counters across its pharmacy network. For many, grabbing a Thrifty cone wasn’t just dessert—it was a time-honored ritual
3. Why Are These 500 Locations Closing? The Bankruptcy Connection
At the heart of this closure lies Rite Aid’s Chapter 11 bankruptcy, filed again in early 2025 following a previous attempt in 2023. Such filings allow companies to restructure debt and sell off assets—but often at the cost of beloved services.
Thrifty’s counters, embedded within Rite Aid stores, cannot be sold independently—they must follow the store closures. As a result, these 500 outlets are disappearing without regard to their individual popularity.
Rite Aid will also auction off the Thrifty Ice Cream brand, its El Monte factory, and associated intellectual property—marking a potential turning point for the product’s future.
4. What’s Still Left? Thrifty Ice Cream Beyond the Counters
Despite the shuttering of in-store counters, Thrifty Ice Cream is not entirely gone. Production at the El Monte factory will continue, and the ice cream remains available in pre-packaged tubs at grocery chains like Albertsons, Vons, Food for Less, and more.
Additionally, some independent, franchised scoop shops not tied to Rite Aid may still operate, especially in California and Arizona. However, the classic Rite Aid counter experience—complete with chrome dipping cabinets and low-priced cones—is set to vanish
5. A Second Life? The New Owners and Revitalization Plans
There’s reason for cautious optimism. In July 2025, Hilrod Holdings—an investment group led by executives from Monster Beverage Corp.—emerged as the successful bidder for Thrifty’s assets, spending roughly $19–19.2 million to acquire the brand, factory equipment, and inventory.
The new owners pledge to respect Thrifty’s heritage by preserving original recipes and iconic scoop styles, while introducing new packaging, flavors, and expanded distribution that could revive the brand’s footprint beyond Rite Aid.
This revitalization, slated to roll out in fall 2025 through 2026, aims to balance nostalgia with modern consumer appeal.
6. What This Means for Fans and the Ice Cream Market
For longtime fans, these closures are deeply emotional. Social media is flooded with memories of grabbing a cheap cone after school or on a family errand—moments made sweeter by Thrifty’s presence.
From a broader perspective, this situation highlights:
-
The fragility of brick-and-mortar partnerships, especially when a parent company faces financial collapse.
-
The importance of legacy brands branching out, so they’re not entirely dependent on one retail channel.
-
The value of revival strategies that blend history with innovation—a route increasingly common in consumer markets.
While the scoop counters may be gone, packaged ice cream keeps the legacy alive, and under new stewardship, Thrifty could find new life in fresher formats and broader distribution.
Conclusion
The closure of 500 Thrifty Ice Cream counters due to Rite Aid’s bankruptcy marks the end of an era, especially for West Coast fans. Yet, the story isn’t over—pre-packaged ice cream remains, and with Hilrod Holdings’ acquisition, the brand’s future looks hopeful.
This moment teaches us that while nostalgia can be powerful, adaptability is essential. Thrifty may be transitioning from in-store scoop counters to a modernized presence—retaining its famous flavors and charm, but with a new game plan for survival and growth.
Let’s just hope wherever you find that next Thrifty cone, it still tastes a little like yesterday.
