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Rite Aid Files for Bankruptcy, Announces Restructuring Plan to Strengthen Financial Position and Ensure Long-term Success

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Key takeaways:

  • Rite Aid has filed for bankruptcy and obtained $3.45 billion in fresh financing as part of a restructuring plan.
  • The company is closing 200 stores and reducing its workforce by 10%, and is exploring the sale of its pharmacy benefit management business.
  • Rite Aid is confident that its restructuring plan will help it “emerge as a stronger, more competitive organization.”

Rite Aid, a major U.S. pharmacy chain, has filed for bankruptcy and obtained $3.45 billion in fresh financing as part of a restructuring plan. The filing is part of an agreement with creditors to reduce debt and position the company for future growth.

The chain has been dealing with falling sales and opioid-related lawsuits. In 2022, Rite Aid settled for up to $30 million to resolve lawsuits alleging pharmacies contributed to an oversupply of prescription opioids.

Rite Aid CEO Heyward Donigan said in a statement that the company is “committed to taking the necessary steps to strengthen our financial position and ensure the long-term success of our business.” The company said it will continue to operate its stores and pharmacies as usual during the restructuring process.

The company has also announced plans to close 200 stores and reduce its workforce by 10%. It is also exploring the sale of its pharmacy benefit management business.

Rite Aid’s restructuring plan is intended to help the company remain competitive in the pharmacy industry. The company said it is confident that its restructuring plan will help it “emerge as a stronger, more competitive organization.”

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