Monster Energy Execs Scoop Up Rite Aid’s Thrifty Ice Cream Brand

Amidst bankruptcy proceedings, Rite Aid has found a buyer for its Thrifty Payless subsidiary, which houses the Thrifty Ice Cream brand, as part of a $19.2 million transaction that also includes KPH Healthcare Services.

Hilrod Holdings, a limited partnership tied to Monster Energy Corporation executives Rodney Sacks and Hilton Schlosberg, was named the successful bidder in court documents filed on June 26. The deal was approved in the U.S. Bankruptcy Court for the District of New Jersey on July 1.

Founded in 1940, Thrifty was born out of a small factory in West Hollywood and its ice cream was sold at the flagship Thrifty Drug Store in downtown Los Angeles. Rite Aid acquired Thrifty Ice Cream in 1996 as part of a $2.3 billion deal that included 1,000 West Coast Thrifty Drug Store locations.

Known for its cylindrical scoops, Thrifty was available at counters inside Rite Aid locations across the West Coast. The brand also sells retail cartons of its best-selling flavors – including Black Cherry, Caramel Cookie Crunch and Red Velvet – at select stores like Rite Aid and Albertsons.

The sale of Thrifty Payless comes after Rite Aid filed for bankruptcy in May, marking the second time the drug store chain has done so since October 2023. Since its most recent bankruptcy filing, the company has announced the closure of more than 1,000 stores.

While announcing its voluntary Chapter 11 proceedings, Rite Aid said it is pursuing a “strategic and value-maximizing sale process for substantially all of its assets.” The drug store chain secured commitments from certain existing lenders to access $1.94 billion in fresh financing to support its sale process.

“While we continue to face financial challenges, intensified by the rapidly evolving retail and healthcare landscapes in which we operate, we are encouraged by meaningful interest from a number of potential national and regional strategic acquirors,” said Matt Schroeder, CEO of Rite Aid, in a statement.