Connect with us

Hi, what are you looking for?

Deluxe Investment Group – Investing and Stock NewsDeluxe Investment Group – Investing and Stock News

Stock

Rite Aid chain reportedly could sell up to 500 stores in bankruptcy plan

Rite Aid, the third-largest U.S. drugstore chain, is reportedly preparing to seek bankruptcy protection and could close 400 to 500 stores.

The Wall Street Journal reported Friday that Rite Aid was negotiating with creditors about a plan that would have it file for Chapter 11 bankruptcy protection and close about a quarter of its 2,100 locations. It would either sell the rest or let its creditors take them over.

The Journal, which previously reported that Rite Aid was considering a bankruptcy filing, said two groups of Rite Aid’s creditors are negotiating over how many stores would be sold, with one group preferring to sell more than it has proposed.

Rite Aid said in a statement that it is ‘continuing to work collaboratively and constructively with our financial stakeholders to identify the best path forward to reduce our debt and position the business for continued success.’

It said no decisions about its next steps have been made.

For years, Rite Aid, based in Philadelphia, has struggled compared to rivals CVS and Walgreens. It has posted weaker sales and struggled with its debt load, which stood at about $3.3 billion as of June 3, and it has said it isn’t bringing in enough cash to service those debts.

Making its financial position more precarious is a federal lawsuit accusing it of ignoring signs that it was filling prescriptions for opioid abusers from 2014 to 2019. Other large pharmacy chains have faced similar allegations. The Justice Department says Rite Aid illegally filled hundreds of thousands of prescriptions for opioids and other controlled substances.

While CVS and Walgreens each have about 9,000 stores, Rite Aid’s attempts at expansion have been much less successful. After it bought the Brooks/Eckerd chain in 2007, it had a little more than 5,000 stores. It has continued to close and sell locations as it has tried to get out of its financial hole.

In 2015, Rite Aid agreed to sell itself to Walgreens, with 865 stores going to another competitor, Fred’s. The Federal Trade Commission blocked the deal, and Rite Aid ultimately sold about 2,200 stores to Walgreens, while the Fred’s part of the sale collapsed.

Rite Aid then tried to sell itself to the Albertsons grocery chain, but it pulled out of the deal in the face of shareholder opposition.

In its latest quarterly filing, in June, Rite Aid said it expected to lose $650 million to $680 million in the current fiscal year and said it had $135 million in cash on hand.

This post appeared first on NBC NEWS

Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!



    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    You May Also Like

    Latest News

    Florida Gov. Ron DeSantis (R) needs a massive infusion of cash in the next two months of the Republican presidential primary race to help...

    Editor's Pick

    ERP or Enterprise Resource Planning solutions help businesses of all sizes manage their daily business operations. First used in the 1990s, ERP systems have...

    Economy

    Amp’s 223.67% Leap: Analyzing the Sudden Spike The cryptocurrency community has recently been set abuzz by the phenomenal rise of Amp (AMP). Just in...

    Latest News

    The United States could be on track for a Joe Biden-Donald Trump rematch in 2024, but it’s the president’s son Hunter Biden who earned...

    Disclaimer: Deluxeinvestmentgroup.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 deluxeinvestmentgroup.com