Swallowing the downgrade pill is not easy for Rite Aid but it’s necessary if you are… well, insolvent.
The prominent pharmacy chain Rite Aid is currently in discussions regarding the details of a bankruptcy plan, which may result in the permanent closure of many of its 2,100+ drugstores. Sources familiar with the company’s negotiations with its creditors have informed the Wall Street Journal that Rite Aid has put forth a proposal to close up to 500 stores as part of its bankruptcy proceedings, with the option to either sell off or transfer the remaining operations to its creditors. But that’s just the modest proposal.
Another group of bondholders is advocating for a more extensive liquidation of stores, leading to an ongoing deliberation regarding the final number of stores slated for closure, as reported by the Journal.
