Rite Aid files for bankruptcy amid opioid-related lawsuits and falling sales

[justaprogressive]

Major U.S. pharmacy chain Rite Aid said Sunday that it has filed for bankruptcy and obtained $3.45 billion in fresh financing as it carries out a restructuring plan while coping 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. It said it had reached an agreement with its creditors on a financial restructuring plan to cut its debt and position itself for future growth and that the bankruptcy filing was part of that process.

The plan will “significantly reduce the company’s debt” while helping to “resolve litigation claims in an equitable manner,” Rite Aid said.

Rite Aid has found itself in a weak financial position, notching roughly $2.9 billion in losses over the past six years and $3.3 billion in long-term debt, GlobalData retail analyst Neil Saunders said Sunday.

https://dnyuz.com/2023/10/16/rite-aid-files-for-bankruptcy-amid-opioid-related-lawsuits-and-falling-sales/