Rite Aid, struggling financially after emerging from Chapter 11 bankruptcy in 2023, is now reportedly preparing for a second bankruptcy. According to a Bloomberg report, the chain is running low on cash and plans to sell its assets in portions during the proceedings. The prior restructuring wasn't enough to alleviate ongoing challenges, including declining revenue and the financial fallout from opioid-related lawsuits. As part of this new bankruptcy, Rite Aid may also implement further store closures, marking a significant shift in its business strategy.
Rite Aid is reportedly "running low on cash" reserves, and heading towards another bankruptcy, with plans to "sell itself in pieces" during the proceedings.
The pharmacy chain will reportedly pursue a debtor-in-possession loan to keep itself funded during the bankruptcy process, indicating severe liquidity issues.
Rite Aid's previous bankruptcy didn't resolve its ongoing struggles, which include declining revenue, competition, and the financial burden of opioid lawsuits.
Plans may include closing some locations permanently, while others will be sold to bidders as part of an effort to liquidate assets.
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