A Nostalgic Favorite in Trouble
Ice Cream Chain Bankruptcy—beloved for its signature flat-topped, cylindrical scoops, whimsical flavors, and its nostalgic presence at Rite Aid pharmacy counters since 1996—is facing a critical crossroads. As Rite Aid filed for Chapter 11 bankruptcy, the storied ice cream brand found itself reduced to collateral in a broader restructuring effort.
The Ripple Effects of Bankruptcy
In 2025, Rite Aid’s financial woes escalated, leading to its second Chapter 11 filing in under two years. The result? Closure of approximately 500 in-store Bankruptcy Forces Ice Cream Chain to Close 500 Locations” Thrifty Ice Cream counters across its pharmacy locations. These counters, embedded deeply into the fabric of Rite Aid stores, could not be sold separately and were slated for shutdown as part of the company’s asset divestiture.
Why Thrifty Counters Had to Go
Unlike standalone storefronts, Thrifty counters were physically integrated into Rite Aid stores—making them inseparable assets and inherently bound to store closures. As the pharmacy chain shuffled its priorities to reduce debt and streamline operations, these embedded counters became unavoidable casualties.
The Heartbreak of Fans and Communities
For many, Thrifty Ice Cream was more than a dessert—it was an experience: memories formed around grab-and-go scoops during errands, after school treats, or weekend indulgences. Consequently, news of the closures sparked emotional reactions. The walk-up counter experience is vanishing fast, and for longtime customers, the closures represent more than the end of a business—they signal the loss of a simple tradition. Many fans noted that “your ice cream cone will taste at least 38% better if it’s eaten while perusing the As Seen on TV aisle of your local Rite Aid.”
Packaging, Production, and Independent Channels
Though the counters disappeared, Thrifty Ice Cream’s core—its flavors, manufacturing facility, and packaged distribution—remains intact. The El Monte, California, factory continues production, ensuring tubs and cartons of Thrifty are still sold in grocery stores and independent scoop shops across California, Arizona, and growing markets in the U.S. and Mexico.
The Auction and the Turnaround Bid
The fate of Thrifty hinged on the bankruptcy auction. In late June, Hilrod Holdings—tied to executives behind Monster Beverage—placed a successful bid of around $19.2 million to acquire the brand, its machinery, inventory, and supporting assets. This pivotal move, approved by a judge, ensured Thrifty’s survival outside of Rite Aid’s collapse.
A Rebirth on the Horizon
Under new ownership, Thrifty Ice Cream is gearing up for a revival. Hilrod Holdings intends to preserve the original recipes, signature scoop style, and nostalgic spirit, while introducing updated packaging, new flavor development, and expanded distribution. Retail partnerships with chains like Albertsons, Vons, Foods Co., and Food for Less are already in place. A phased re-launch is set to begin in fall 2025 and stretch into 2026.
What This Means for the Ice Cream World
- Preserving Tradition Amid Change: Thrifty’s revival honors a near-century of tradition while adapting to modern retail formats.
- Retail Evolution: The transition signals how beloved legacy food brands can migrate from physical counters to packaged and wider retail presence.
- Consumer Resilience: Devoted fans may now access Thrifty not just at pharmacies but in grocery aisles, stand-alone shops, and future creative formats.
- Business Insight: Bankruptcy doesn’t necessarily doom a brand—if core value remains, it can spark reinvention.
Summary Table: Key Turning Points
| Development | Outcome |
| Rite Aid Chapter 11 filing (May 2025) | Closure of 500 Thrifty counters |
| Auction of assets (June 2025) | Hilrod Holdings wins bid—brand survival ensues |
| Revival strategy (Fall 2025 onward) | Refreshed packaging, wider distribution, new flavors, preserved identity |
Final Thoughts
The story of Thrifty Ice Cream underlines the resilience of iconic brands in tumultuous times. What began as a set of closures due to Rite Aid’s insolvency has evolved into a promising revival. While fans may mourn the loss of the scoop counter experience, the broader distribution and renewed investment offer hope that Thrifty’s nostalgic joy will be savored in new contexts.
With fall 2025 marking the beginning of Thrifty’s resurgence, ice cream lovers can expect to find their favorite flavors in fresh new formats—reminding us that in the world of dessert, the end of one chapter often leads to new beginnings.
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