Rite Aid is preparing to file for Chapter 11 bankruptcy in the coming weeks to restructure more than $3.3 billion in long-term debt, according to The Wall Street Journal, which first reported the news. The bankruptcy filing would also enable the company to address lawsuits alleging it unlawfully filled hundreds of thousands of opioid prescriptions.
Advisers to the pharmacy chain, which is one of the largest in the U.S., are working to create a restructuring plan ahead of the filing, Bloomberg reported, citing people with knowledge of the matter. In a statement to Retail Dive, Rite Aid said, “we do not comment on rumors and speculation.”
According to the WSJ, Rite Aid hasn’t yet agreed on a settlement that it knowingly oversupplied prescription painkillers and the bankruptcy filing, should it move forward, would pause the federal, state and local claims against the retailer. The move would also likely consolidate the thousands of claims against the pharmacy retailer and allow it to resolve them in one place.
Source: Retail Dive
Omni Talk is the retail blog for retailers, written by retailers. Chris Walton and Anne Mezzenga founded Omni Talk in 2017 and have quickly turned it into one of the fastest growing blogs in retail. 