Rite Aid Facing Bankruptcy, Amid Opioid Lawsuits , and Annual Losses.
Associated Press reports that Rite Aid has filed for
bankruptcy protection ahead of a plan to sell a portion
of its business while attempting to restructure.
Late on October 15, the drugstore chain announced that
it had obtained $3.45 billion in financing to support
the company through the Chapter 11 process.
The news comes as the company faces heavy
losses and a wave of lawsuits related to the
ongoing opioid crisis in the United States.
According to Rite Aid, the newly acquired financing will
“significantly reduce the company’s debt” while helping
to “resolve litigation claims in an equitable manner.”.
The company is reportedly awaiting
court approval for a number of motions
intended to support its business.
Those motions include efforts to avoid
interruptions to paying employee wages and
benefits, while also paying vendors in full.
AP reports that Rite Aid, which operates
over 2,100 drugstores in the U.S., has been
posting annual losses for several years.
The Philadelphia-based company has been
forced to close some stores and cut costs while
dealing with long-standing financial obstacles.
Rite Aid is one of several major U.S. drugstore
chains to face financial risks amid a series
of lawsuits over opioid prescriptions.
Last year, Rite Aid reached several settlements
in opioid-related cases, including one with the
state of West Virginia for as much as $30 million.
Last year, Rite Aid reached several settlements
in opioid-related cases, including one with the
state of West Virginia for as much as $30 million