Major US pharmacy chain Rite Aid files for bankruptcy
82 Video Views·Oct 16, 2023
Debt-laden Rite Aid filed for bankruptcy protection on Sunday and said it would close underperforming stores, as the drugstore chain comes under pressure from lawsuits alleging that it helped fuel the U.S. opioid crisis.
The filing will allow it to resolve litigation claims in an "equitable manner", the company said, adding it has received a commitment for $3.45 billion from some lenders, which will provide liquidity during the bankruptcy process.
U.S. drugstore chain Rite Aid filed for bankruptcy protection on Sunday.
The Pennsylvania-based chain operates more than 2,000 stores across 17 states.
That puts it well behind rivals Walgreens Boots Alliance and CVS Health.
Along with other chains, it's been under pressure from lawsuits alleging it helped fuel the
U.S. opioid crisis.
The Justice Department sued Rite Aid in March, saying it missed red flags when it illegally
filled hundreds of thousands of prescriptions for controlled substances that included opioids.
More than 900,000 people have died of drug overdoses in the U.S. since 1999.
Data from the U.S. Centers for Disease Control and Prevention show opioids play an oversized
role in that death toll.
Rite Aid listed assets and liabilities in the range of $1 billion to $10 billion in
a New Jersey court filing.
The company said it would continue to operate as normal while under bankruptcy protection.