Rite Aid, one of the top-10 largest pharmacies in the United States, proposed closing up to 500 of its stores in bankruptcy.
The Wall Street Journal reported Friday the drugstore chain is “negotiating with creditors over a chapter 11 plan that would substantially shrink its operational footprint.”
If Rite Aid closed 500 stores, that would equal approximately 25% of its 2,000+ drugstores nationwide.
BREAKING: Rite Aid Planning to Shut Down Hundreds of Stores in Bankruptcy – WSJ pic.twitter.com/S0b212nmKD
— Insider Paper (@TheInsiderPaper) September 22, 2023
The New York Post reports:
The company has proposed to close roughly 400 to 500 stores in bankruptcy, and either sell or let creditors take over its remaining operations, according to the report.
Given the conversations remain ongoing, no decisions have been made at this time, Rite Aid said.
The Philadelphia-based company faces more than $3.3 billion in debt and over a thousand federal lawsuits alleging it oversupplied opioids, the Journal reported. The company operates more than 2,330 stores in 17 states, although it is much smaller than rivals such as Walgreens Boots Alliance and CVS Health.
Rite Aid is negotiating with creditors over the terms of a bankruptcy plan that would include liquidating a substantial portion of its more than 2,100 drugstores, citing people familiar with the talks. https://t.co/iU3AGvhfjX
— NEWSMAX (@NEWSMAX) September 23, 2023
According to Drug Channels, Rite Aid is one of the top seven companies operating pharmacies.
Per Drug Channels:
The top seven companies operating pharmacies—CVS Health, Walgreens Boots Alliance, Cigna, UnitedHealth Group, Walmart, Kroger, and Rite Aid—accounted for 70% of U.S. prescription dispensing revenues in 2022. The top 15 pharmacies accounted for more than 75% of total dispensing revenues from retail, mail, long-term care, and specialty pharmacies.
Yahoo Finance aired a video report last month saying Rite Aid reportedly prepared bankruptcy filings while facing opioid lawsuits.