Less than two years after filing for Chapter 11 bankruptcy, drugstore chain Rite Aid is once again considering filing for bankruptcy, according to a report published by the Wall Street Journal. Alternatively, Rite Aid is also considering selling a part of or all of its business as an alternative to a new Chapter 11 filing.
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According to the report, the Philadelphia-based company would be forced to liquidate more of its footprint should a sale not go through, regardless of whether it's done inside or outside bankruptcy.
The last time Rite Aid filed for Chapter 11 bankruptcy, the company was operating more than 2,000 stores across the United States, employing approximately 47,000 people, as per the Daily Mail. In contrast, back in 2008, the company operated 5,059 locations.
Bankruptcy Filing
As per Reuters, when Rite Aid originally filed for bankruptcy, it reported $750 million in losses and $24 billion in revenue. Following their financial restructuring, the drugstore emerged from bankruptcy, operating since 2024 as a private company. This, however, was preceded by hundreds of store closures, the sale of Elixis Solutions, and settlement negotiations with its lenders.
Moreover, at the time, Rite Aid faced 1,600 opioid lawsuits. It was alleged at the time that Rite Aid had been oversupplying painkiller subscriptions, as per the Daily Mail. A Rite Aid spokesperson denied all allegations at the time.
"We expect to negotiate a resolution of the opioid-related lawsuits with the various parties involved," the spokesperson said. "We also intend to resolve our legacy contract disputes, government investigations and securities matters."
Following the initial financial restructuring stemming from the Chapter 11 bankruptcy filing, Rite Aid now operates around 1,300 locations across the country, as per the Daily Mail.
Currently, Rite Aid sits as the third largest retail pharmacy chain, behind second-place Walgreens and first-place CVS. This restructuring appears to not have been enough for an ever-changing market. This has forced other competitors, such as Walgreens, to shut down multiple stores.
Walgreens confirmed, as per The Mirror, that they would shut down 500 stores in 2025. CVS, meanwhile, as per Fox 5, plans to close 270 stores in 2025. The drugstore chain has already closed 900 locations from 2022 to 2024.
