Despite major restructuring efforts, Rite Aid was forced to press the button.
On Sunday, October 15th, Rite Aid, a prominent U.S. pharmacy chain, declared bankruptcy and secured $3.45 billion in new financing as part of a restructuring initiative, prompted by declining sales and lawsuits related to opioids. The company had previously settled for around $30 million in 2022 to resolve lawsuits claiming it contributed to the oversupply of prescription opioids. The bankruptcy filing is an integral component of Rite Aid’s strategy to manage its debt and prepare for future growth, aligning with its creditors’ approval of a financial restructuring plan. This plan will substantially reduce the company’s debt and facilitate a fair resolution of litigation claims.
It’s worth noting that in March 2023, the US Justice Department filed a complaint against Rite Aid, alleging that the company knowingly dispensed hundreds of thousands of illegal prescriptions for controlled substances from May 2014 to June 2019, with pharmacists and the company allegedly disregarding warning signs indicating the prescriptions were illicit.
