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Beleaguered pharmacy chain Rite Aid has officially filed for Chapter 11 bankruptcy protection after weeks of media reports suggesting that it was on the cusp of doing so. The bankruptcy is Rite Aid’s second in two years, and it leaves a lot of questions for both customers and employees, including whether stores will be closing, if there will be layoffs, and what happens to customers prescriptions. Heres what you need to know about Rite Aids second bankruptcy. Why did Rite Aid file bankruptcy the first time? Rite Aid originally filed for bankruptcy in 2023. It emerged from the process less than a year ago, in 2024, with the hopes of being in a better financial position and on more resilient footing. But with its second bankruptcy filing yesterday, those hopes seem to have been dashed. To understand why Rite Aid is once again filing for bankruptcy, it helps to understand why the company originally filed for bankruptcy in 2023something Rite Aid has laid out in detail in documents it filed with the United States Bankruptcy Court in the District of New Jersey today. Rite Aid cited multiple factors that necessitated its 2023 bankruptcy filing, including: suboptimal lease portfolio of underperforming stores elevated labor costs increased costs from “shrink” (theft) lower credit limits more restrictive payment terms from vendors reduced demand for its non-medication front end products The lack of such inventory, Rite Aid said, gave rise to a vicious cycle: high-margin front-end sales declined due to insufficient inventory, and lagging sales depleted liquidity and caused vendors to tighten trade terms even further. The companys 2023 bankruptcy was meant to help the struggling pharmacy chain address the financial issues caused by these problems. But thats not the way things have played out since, which has led to the company filing its second bankruptcy this week. Why is Rite Aid filing for bankruptcy again? In a court document, Rite Aid said that its post-emergence business plan was based on data-driven projections (and extensive discussions with vendors) that Rite Aids front-end vendors would return to their less restrictive prepetition payment terms as well as assurances from select capital providers that the company would be provided with the needed letter of credit facilitiesall of which the company said was crucial to Rite Aids recovery. But the filing goes on to say that Those assurances were broken. Rite Aid said that the letters of credit it did obtain were materially less than expected and that many vendors didnt end up relaxing the more restrictive payment terms to the anticipated levels. Pile on macroeconomic pressures to this and Rite Aid said that The combined effect of lower-than-expected liquidity from the letter of credit facilities, inventory challenges, strained vendor relations, lower consumer spending, and competitive pressures has ultimately left the Company with insufficient liquidity to operate its business and service its debt obligations in the ordinary course. Thus, its second bankruptcy filing this month. Whats happening with Rite Aid prescriptions? Of course, many customers will be concerned about what will happen to their prescriptions during the bankruptcy process. In a letter to customers dated May 5, Rite Aid said that one of its paramount priorities during the bankruptcy process is to ensure that customers pharmacy needs are not interrupted. Rite Aid says that a majority of its stores will remain open for the next few months and that during that time pharmacy services including prescriptions and immunizations will remain available. In other words, for a few months at least, most customers should be able to still get their prescriptions filled at their local Rite Aid store. However, the company also stated that it’s working to facilitate a smooth transfer of customer prescriptions to other pharmacies. This is most likely in preparation for inevitable Rite Aid store closures or sales. Are Rite Aid stores closing? Some already have, and more closures in the months ahead are almost a certainty. According to documents Rite Aid that filed with the court, these 11 locations have already closed or will close soon: Poughkeepsie, NY Redmond, WA Sunnyside, WA Craigsville, VA Costa Mesa, CA Harrisburg, PA Keene, NH Ridgewood, NY Kutztown, PA Neptune, NJ Halifax, PA Rite Aid also says that customers can keep an eye on which stores are open using its online store locator tool. The locator currently states that Rite Aid has 1,240 locations in the United States across 15 states. Whats happening to Rite Aid employees? It is thought that Rite Aids bankruptcy will see some store locations closed, while other stores will be sold to other entities that may seek to keep the stores running in some fashion. Indeed, in a press release confirming its bankruptcy plans, Rite Aid CEO Matt Schroeder said that he was encouraged by meaningful interest from a number of potential national and regional strategic acquirors. But inevitably, layoffs are to be expected, as Schroeder said that one of the companys priorities was preserving jobs for as many associates as possible. Yesterday, Bloomberg reported that an internal letter was sent by Schroeder to employees that the company will begin cutting jobs at its corporate offices in Pennsylvania. What will shopping at Rite Aid be like while this is happening? Although the company says most stores will remain open for the next few months, expect to notice changes before then. In a letter to vendors, the pharmacy chain said, “At this time, Rite Aid has generally stopped purchasing goods and services, except for those that it believes are essential to supporting this process.” Customers should also be aware that Rite Aid has posted a banner on its website stating that as of June 5, the company will no longer honor Rite Aid gift cards and wll no longer accept returns or exchanges.
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Pinterest fans are nothing if not loyal. Many have spent yearssometimes decadescarefully curating boards filled with wedding inspiration, home decor ideas, fashion, and more. Now users are logging in only to find themselves locked out of their accounts without warning, with all their pins gone. Frustrated users have taken to platforms like X and r/Pinterest to vent. The comment sections on Pinterests official Instagram and TikTok pages are flooded with pleas from angry users demanding answers. I had a beautiful Pinterest board with over 26,000 of the most beautiful images and my account was just permanently banned, one user posted on X. Pinterest you will be dealt with. Another, who reportedly lost an account they had maintained for seven years, wrote, I feel like my library of Alexandria has been burned down. For creatives, Pinterest isnt just for funits also a professional tool. “Its the industry standard to present a moodboard before any project goes into action, and the sheer amount of valuable references Ive lost out on since being banned is hard to describe,” wrote one Reddit user. “Ive had to postpone shoots and scramble to reassemble projects. Years and years of curating down the drain and multiple projects stuck in limbo.” Those whove lost accounts claim theyve done nothing wrong. I made a new account, didn’t even add anything yet. Get an email saying I’m banned/suspended, one user posted on X. I try to dispute it and your typical bot responds saying there’s nothing it can do. Others are now afraid to even open their accounts for fear of what they might find. Many are pointing the finger at AI. Pinterest’s Help Center states that it uses AI in “improving content moderation,” a system it has relied on for years to enforce its Community Guidelines. Like many platforms, Pinterest uses a mix of AI and human review. A Pinterest spokesperson tells Fast Company: Pinterest has long-established public Community Guidelines that clearly outline what is and isnt allowed on the platform. Were committed to building a safer and more positive platform, and enforce these policies rigorously and continuously. Users who believe their account may have been deactivated mistakenly may submit an appeal. For some, that response doesnt cut it. Instead, theyre exploring legal action, seeking recovery for the damages users have suffered, which may include financial compensation. These damages include direct financial losses from Pinterest ad campaigns or traffic, as well as emotional distress.
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There we were: two experienced professionals, each standing on the iconic red dot of our own TEDx stages, ready to deliver what we hoped would be the most impactful talks of our careers. For Jamie, her meticulously rehearsed opening linethe one she practiced 327 times in the shower, in the mirror, and in front of a very patient partnerevaporated the moment the spotlight hit. Hundreds of expectant eyes waited as the silence stretched . . . and stretched. Oh @*#%, she whisperedinto the mic. What was meant to be a private moment of panic turned into a public announcement. But instead of recoiling, the audience leaned in. Scott was one minute and fifty seconds into his carefully choreographed talk when he realized the slide clickerhis lifelinewasnt in his hand. It was backstage. As his partner began to talk, he edged off the red dot, sliding sideways like what he now calls a nervous crab doing the walk of shame under a spotlight. What could have been a disaster became an unexpected moment of relatability. What should have been our most cringeworthy professional moments instead became our most powerful points of connection. Who gets to make mistakes After Jamies talk, someone approached her saying, “That moment when you paused made your message so human. I was rooting for you! “When you had to edge off the stage,” an executive told Scott afterward, “I immediately felt I could relate to you. It was like watching a high-stakes version of that dream where you show up to work without pants.” The revelation hit us both like a thunderbolt: Our supposed failures weren’t failures at all. They were our strongest connection points. All those hours spent practicing perfect delivery? Not wasted time at all, because we were able to recover. But the unplanned human moments? Pure gold. It’s worth acknowledging, however, that our positive experiences with vulnerability came from positions of established credibility. As seasoned professionals with certain privileges, we could afford these momentary lapses without severe consequences. But we also know that vulnerability’s impact varies dramatically depending on who you are and the context in which you’re operating. The Paradox of Leadership We’re often taught that leadership means projecting flawless competence, credibility, and charisma. However, what social psychologists call the pratfall effecta phenomenon documented by Elliot Aronson in 1966shows that competent people become more likable when they make small mistakes. In other words, the occasional face-plant makes you more relatable. But there’s a critical caveat that Aronson himself emphasized: This effect primarily works for those already perceived as highly competent. For those still establishing credibilityparticularly women, people of color, and others from underrepresented groupsthe same “charming” mistake can reinforce negative stereotypes and undermine authority. As TED speakers, we had the freedom to make mistakes, which actually increased our likability and connection with the audience without compromising our credibility. In our work with executives, weve seen this paradox play out repeatedly. We’ve seen repeatedly that established leaders who initially resist showing any vulnerability find their influence dramatically increases after sharing natural imperfections. Yet for emerging leaders or those from marginalized backgrounds, the calculus is far more complex. It’s essential to acknowledge that the luxury of vulnerability isn’t equally distributed. For women in male-dominated fields, research shows that displays of emotion or uncertainty can trigger harsher judgment than for their male counterparts. For people of color, vulnerability can collide with pernicious stereotypes, reinforcing biases rather than building connection. And for those earlier in their careers or from less privileged backgrounds, the margin for error is often vanishingly small. Alison Fragale’s recent research in her book Likable Badass reveals that leaders face a fundamental paradox: They need to be both respected for competence and liked for warmth. The most effective leaderswhom she calls likable badassesstrategically reveal vulnerabilities while maintaining clear boundaries, creating what she terms “approachable authority.” Yet Fragale also acknowledges that women and people of color often face a much narrower band of acceptable behavior, where too much warmth can undermine perceptions of competence, and too much assertiveness can trigger backlash. The path to becoming a “likable badass” is riddled with structural inequities that demand recognition. Which is why we believe vulnerabilitytailored to contexthas the potential to be a leadership superpower. The Vulnerability Sweet Spot: A Framework for the Perfectly Imperfect Leader Through trial, error, and sometimes painfully awkward experience, we’ve developed a framework for authentic, courageous leadership that we now share with executives who are tired of the exhausting perfectionism treadmill. But we emphasize that this framework must be applied with careful attention to context, power dynamics, and the unique challenges faced by those with marginalized identities: 1. Create intentional vulnerability loops Ed Catmull, Jamies former boss and cofounder and former president of Pixar Animation, would often say in meetings “I’m wrong more than half the time. That simple phrase created what Harvard professor Jeff Polzer calls a “vulnerability loopinviting reciprocal openness that builds trust faster than a box of free donuts in the break room. By modeling approachable authority, he cultivated psychological safety that fueled Pixar’s creative engine. But we’ve observed that this same approach can backfire for leaders without Catmull’s established positional power and reputation. For a woman leading a male-dominated team or a person of color in a predominantly white organization, admitting uncertainty might inadvertently reinforce harmful stereotypes about competence. The lesson? Sometimes the most powerful thing a well-established leader can say is “I have no idea what I’m doing right now.” But for others, strategic vulnerability requires careful calibration. 2. Transform mistakes into growth narratives Scott had prepared meticulously for his courage workshop with a large government leadership teambut within minutes, he realized hed misread the room. His agenda assumed participants would willingly engage, but the energy was brittle. The stress was high, morale was low, and the silence hung heavy. Then something unexpectedand unscriptedhappened. The chief elected official chose to speak first. But instead of safe, ceremonial words, he paused, and shared a specific fear he was facing in that moment as a leader. The room shifted. ilence held for a beat. Then, one by one, others began to speaknaming real fears, deeper commitments, and the tensions theyd been carrying alone. That moment of unrehearsed vulnerability didnt fix everything. But it disrupted the silence, reset the tone of leadership, and sparked the psychological safety needed for meaningful change to begin. 3. Create structural support for imperfection Pixar holds rigorous postproduction reviews that deliberately focus on uncovering mistakesdespite the very human tendency to celebrate victories and immediately start stressing about the next project. The process norms prevent individual blame, instead promoting shared responsibility for both successes and improvements. At its heart, the process embraces the principle that imperfection, continuous learning, and growth form the foundation of great filmmaking. By creating formal structures to examine what didn’t work, the studio transforms potential failures into catalysts for innovation. When failure analysis becomes collective rather than personal, it creates safer spaces for those who might otherwise face disproportionate consequences for acknowledging mistakes. 4. Create equitable spaces for vulnerability At Pixar, Jamie codesigned a Mutual Mentorship Program specifically designed to address power imbalances. Over six months, senior mentors and junior mentees built relationships by exchanging responses to questions like, “Share a pivotal time that created anxiety but informs who you are today.” This structured approach produced two remarkable outcomes. First, mentors gained genuine insight into the dramatically different experiences of those with less organizational power. Many left the program as vocal advocates for their mentees, having seen firsthand the additional barriers they navigated. Second, mentees formed a powerful coalition where they could practice speaking up authentically. Through monthly discussions about power dynamics and calculated risk-taking, they developed both individual confidence and collective strengthtransforming vulnerability from a personal liability into a shared asset. 5. Know your audience Before revealing vulnerability, assess the terrain carefully. Do your colleagues and superiors already view you as competent? Do they genuinely care about your success? While it’s ultimately leaders’ responsibility to make workplaces safe for authenticity, we must acknowledge that not all environments offer this security. For those still establishing credibilityespecially individuals from underrepresented backgroundsthe most courageous act might be a carefully timed truth or a question that invites others in. Even micro-moments, like asking a powerful question for honest feedback in a team setting or naming a challenge with curiosity rather than certainty, can plant the seeds of strategic vulnerability. These moments may not be headline-worthy, but over time, they build trust, credibility, and voice. If you determine that sharing vulnerably carries too much risk in your current position, remember that choosing to strategically present yourself isn’t “fakeit’s a legitimate form of self-protection. The calculation is intensely personal: What are the costs of being real versus the costs of maintaining a more guarded professional persona? There’s no universal right answer, only the one that serves your well-being and advancement in your specific context. The Real Leadership Superpower Our TED experiences taught us that leadership impact doesn’t come from flawless performance, but from authentic human connection. The moments that feel most vulnerablewhen your mind goes blank during a presentation or when you have to admit you have no idea how to solve a problemare precisely where your most meaningful leadership happens. The next time you feel that urge to appear perfect, remember: Your most authentic moment might be waiting on the other side of what feels like failure. In a world increasingly dominated by curated personas and polished images, authentic vulnerability can be a powerful differentiator, but also a risk that varies dramatically depending on who you are. After all, nobody roots for the superhero who never breaks a sweat. We root for the one who gets knocked down, mutters something slightly inappropriate, and then gets back up again with a knowing smile. But we must also work toward a world where all leaders, regardless of their identity, have the freedom to be imperfectly human without disproportionate penalties.
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