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.
Overview
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.
Content generated by AI—learn more or report issue.
Get both sides in 5 minutes with our daily newsletter.
Analysis
- 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.
Articles (6)
No highlight available for this article.
CNN·2M·No highlight available for this article.
NBC News·2M·No highlight available for this article.
USA TODAY·2M·No highlight available for this article.
ABC News·2M·No highlight available for this article.
Associated Press·2M·No highlight available for this article.
Associated Press·2M·FAQ
Rite Aid is seeking to sell its drug prescription processing systems, scripts, and other components piece by piece, as the company aims to liquidate assets to repay lenders.
Rite Aid now operates around 1,200–1,300 stores, down from over 2,000 stores before its October 2023 bankruptcy. The company closed hundreds of locations during its first restructuring.
Rite Aid faced lawsuits and settlements related to the opioid crisis, including a DOJ settlement over allegations of filling unlawful prescriptions for controlled substances.
The provided article summary states Rite Aid secured $1.94 billion in financing, though specific details about this funding are not detailed in the provided citations.
History
- 2M3 articles