Rite Aid Files for Chapter 11 Bankruptcy Amid Opioid Lawsuits and Lagging Sales

Benzinga 2023-10-16

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Rite Aid filed for Chapter 11 bankruptcy protection in New Jersey on Sunday, allowing them to restructure and significantly reduce debt amid slowing sales and litigation. The company reached a deal with creditors for a restructuring plan that includes evaluating store locations and closing underperforming ones. Lenders also agreed to provide $3.45 billion in new funding. Rite Aid has faced slowing sales, mounting debt, and lawsuits alleging they contributed to the opioid epidemic by oversupplying painkillers. They have appointed a new CEO, Jeffrey Stein, to steer the restructuring.

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