Rite Aid Files for Second Chapter 11 Bankruptcy, Plans to Sell All Stores
Rite Aid's second bankruptcy filing triggers store closures and significant changes for customers as the company seeks buyer for its locations and assets.
Rite Aid customers can expect their local store to close or change ownership in the next few months, as the struggling drugstore chain goes through another bankruptcy filing.
What customers can expect as Rite Aid closes or sells all its drugstores
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The filing marks the second time in less than two years Rite Aid has filed for bankruptcy after a previous restructuring reducing the company's debt.
Are Rite Aid stores closing? What about your prescriptions? Details on bankruptcy filing
USA TODAY·9d·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.Rite Aid had been closing stores and struggling with losses for years before its first bankruptcy filing in 2023.
What customers can expect as Rite Aid closes or sells all its drugstores
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Rite Aid is a distant third-largest nationwide standalone pharmacy chain in the United States — and the seventh largest pharmacy overall, when taking into account big box chains.
Rite Aid files for bankruptcy — again | Business
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Pharmacy chains, such as Rite Aid, Walgreens and CVS, have been under pressure as falling drug margins and competition from Walmart and Amazon have led to a closure of hundreds of stores.
Rite Aid files for second bankruptcy in two years
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Summary
Rite Aid has filed for Chapter 11 bankruptcy for the second time, aiming to sell all 1,245 stores due to ongoing financial difficulties. Customers should expect many local stores to close or change ownership in the coming months, with inventory shortages likely. Rite Aid plans to sell customer prescription files and inventory, halting rewards programs and gift card usage. CEO Matt Schroeder emphasizes a focus on ensuring continuous pharmacy services while navigating the sales process amidst industry challenges. The company secured $1.94 billion in financing to maintain operations during this transition.
Perspectives
Rite Aid is filing for bankruptcy for the second time, looking to sell its assets while keeping stores open and ensuring continuity for customers' prescriptions.
The company faced significant challenges, including $2.5 billion in debt after its first bankruptcy and ongoing pressure from competition and declining drug margins.
Despite efforts to restructure and previously cut debt, Rite Aid's financial troubles illustrate broader issues in the pharmacy sector, as rivals also face store closures and market pressure.
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