Close Menu

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    India’s Modi Visits Ukraine This Week, After A Recent Trip To Moscow. Here’s What It Could Mean

    August 23, 2024

    Former House Speaker Nancy Pelosi Says She Wanted To ‘Protect’ President Biden’s Legacy

    August 23, 2024

    China Says It Is ‘Seriously Concerned’ About US Nuclear Strategic Report

    August 23, 2024
    Facebook X (Twitter) Instagram
    Trending
    • India’s Modi Visits Ukraine This Week, After A Recent Trip To Moscow. Here’s What It Could Mean
    • Former House Speaker Nancy Pelosi Says She Wanted To ‘Protect’ President Biden’s Legacy
    • China Says It Is ‘Seriously Concerned’ About US Nuclear Strategic Report
    • How Emily In Paris Is Tackling Sexual Harassment In Fashion
    • England’s Hull Leads Women’s Open After Round One
    • Democrats Reject Gaza Protesters Demand To Give Speaking Slot To Palestinian
    • Coldplay Covers Taylor Swift At Vienna Stadium Where Her Eras Tour Shows Were Canceled Due To Foiled Terror Plot
    • FDA Signs Off On Updated Covid-19 Vaccines From Moderna And Pfizer/BioNTech
    Facebook X (Twitter) Instagram
    PrimeenewsPrimeenews
    Demo
    • Home
    • Politics

      India’s Modi Visits Ukraine This Week, After A Recent Trip To Moscow. Here’s What It Could Mean

      August 23, 2024

      Former House Speaker Nancy Pelosi Says She Wanted To ‘Protect’ President Biden’s Legacy

      August 23, 2024

      China Says It Is ‘Seriously Concerned’ About US Nuclear Strategic Report

      August 23, 2024

      Democrats Reject Gaza Protesters Demand To Give Speaking Slot To Palestinian

      August 23, 2024

      Parents Hide Children From Mandatory Evacuations As Ukraine Says Russia Advancing Fast On key City

      August 23, 2024
    • Technology
    • Travel
    • Health
    • Sports
    • Entertainment
    • Business
    • Shopping
    • af Afrikaanssq Albanianam Amharicar Arabichy Armenianaz Azerbaijanieu Basquebe Belarusianbn Bengalibs Bosnianbg Bulgarianca Catalanceb Cebuanony Chichewazh-CN Chinese (Simplified)zh-TW Chinese (Traditional)co Corsicanhr Croatiancs Czechda Danishnl Dutchen Englisheo Esperantoet Estoniantl Filipinofi Finnishfr Frenchfy Frisiangl Galicianka Georgiande Germanel Greekgu Gujaratiht Haitian Creoleha Hausahaw Hawaiianiw Hebrewhi Hindihmn Hmonghu Hungarianis Icelandicig Igboid Indonesianga Irishit Italianja Japanesejw Javanesekn Kannadakk Kazakhkm Khmerko Koreanku Kurdish (Kurmanji)ky Kyrgyzlo Laola Latinlv Latvianlt Lithuanianlb Luxembourgishmk Macedonianmg Malagasyms Malayml Malayalammt Maltesemi Maorimr Marathimn Mongolianmy Myanmar (Burmese)ne Nepalino Norwegianps Pashtofa Persianpl Polishpt Portuguesepa Punjabiro Romanianru Russiansm Samoangd Scottish Gaelicsr Serbianst Sesothosn Shonasd Sindhisi Sinhalask Slovaksl Slovenianso Somalies Spanishsu Sundanesesw Swahilisv Swedishtg Tajikta Tamilte Teluguth Thaitr Turkishuk Ukrainianur Urduuz Uzbekvi Vietnamesecy Welshxh Xhosayi Yiddishyo Yorubazu Zulu
      en English
    PrimeenewsPrimeenews
    Home»Business»Rite Aid Files For Bankruptcy
    Business

    Rite Aid Files For Bankruptcy

    admin@primenewsBy admin@primenewsOctober 16, 2023No Comments0 Views

    Rite Aid filed for Chapter 11 bankruptcy protection Sunday, a casualty of a miserable environment for drug stores, exacerbated by its runner-up status to bigger chains and expensive legal battles for allegedly filling unlawful opioid prescriptions.

    The bankruptcy was not a surprise. Its bigger rivals, CVS and Walgreens, are also facing many of the same problems. They, too, are closing stores as Amazon and big-box chains like Walmart, Target and Costco serve as more customer-friendly alternatives to nationwide pharmacy chains.

    But Rite Aid is in much worse financial shape than its competitors and unable to weather the storm that has been beating down on the industry. On Thursday, it filed a notice to the US Securities and Exchange Commission saying it would be unable to file its latest quarterly financial report because it was looking at “strategic alternatives,” which is Wall Street speak for “considering bankruptcy.”

    In that filing, the company said it expected its losses would increase significantly in the past quarter, which is saying something, considering it lost about three quarters of a billion dollars between March 2022 and March 2023 — and another $307 million between March and May this year. Over the past six years, Rite Aid has tallied nearly $3 billion in losses.

    At the beginning of June, the last time the company filed a financial report, Rite Aid had just $135.5 million of cash on hand -— and $3.3 billion in long-term debt, which exceeded the value of the company’s assets by nearly $1 billion. With rising interest rates, that debt wasn’t cheap to finance.

    “It was always a matter of when, not if, Rite Aid would file for bankruptcy,” said Neil Saunders, managing director of GlobalData, in a note to investors. “The company has been deep in the red for the past six years.”

    A plan to stay afloat

    The company said in a statement it had secured $3.5 billion in financing and debt reduction agreements from lenders to keep the company afloat through its bankruptcy.

    It said it would accelerate its pace of store closures and sell off some of its businesses, including prescription benefit provider Elixir Solutions. Bankruptcy could also help resolve the company’s legal disputes at a vastly reduced cost.

    As part of the bankruptcy plan, Rite Aid appointed a new CEO, Jeff Stein, who will also serve as the head of restructuring and a board member. Stein, in the statement, said the company plans to remain in business.

    “With the support of our lenders, we look forward to strengthening our financial foundation, advancing our transformation initiatives and accelerating the execution of our turnaround strategy,” he said. “In doing so, we will be even better able to deliver the healthcare products and services our customers and their families rely on -— now and into the future.”

    Rite Aid has had an interim CEO since January 2023.

    Fighting opioid lawsuits

    Rite Aid’s losing battle against mounting debt was exacerbated by its legal troubles stemming from accusations of filing unlawful opioid prescriptions for customers.

    The Department of Justice filed suit against the company in March, claiming that it knowingly processed “unlawful prescriptions for controlled substances.” That stands in violation of the False Claims Act and Controlled Substances Act. The government accused Rite Aid of missing “obvious red flags” when it filled the prescriptions for addictive pain killers.

    When the US Justice Department filed its lawsuit, Attorney General Merrick Garland said the department would use “every tool at our disposal” to hold Rite Aid accountable for contributing to the opioid epidemic.”

    Walgreens, CVS and others settled similar lawsuits over the past few years, but they remain in better financial shape and were largely able to weather the tens of billions of dollars owed to various government agencies in settlements. More than half a million people have died from drug overdoses in the United States between 1999 and 2020, according to the US Centers for Disease Control and Prevention.

    Rite Aid is a distant third-largest nationwide standalone pharmacy chain in the United States — and the seventh largest pharmacy overall, when taking into account big box chains. It has more than 2,200 stores in 17 states.

    It was offered a $17 billion lifeline in 2015 when Walgreens offered to buy the chain. But the deal was met with stiff scrutiny from US regulators who feared the combination would violate federal antitrust laws and reduce competition in the drug store market.

    Ultimately, in 2017, the companies agreed to a smaller, $4.4 billion deal, in which Walgreens bought just under 2,000 Rite Aid locations, leaving Rite Aid diminished in stature and unable to compete at the scale of its bigger rivals.

    — CutC by cnn.com

    admin@primenews
    • Website

    Related Posts

    UK Energy Warns Of ‘Grave’ Jobs And Investment Concerns

    August 22, 2024

    Protected Status Boosts Welsh Whisky ‘Credibility’

    August 21, 2024

    More Trouble For Boeing : Tests Of Its Troubled 777X Paused After It Found Structural Problems

    August 21, 2024
    Leave A Reply Cancel Reply

    Top Posts

    Taylor Swift And Olympics Scams Fuelling Fraud

    May 22, 2024387K

    Israel Says South Africa Distorting The Truth In ICJ Genocide Case

    January 12, 2024675

    A High-Altitude Tunnel Is Latest Flashpoint In India-China Border Tensions

    March 22, 2024467

    Russia Election 2024: Voting Begins In Election Putin Is Bound To Win

    March 15, 2024362
    Don't Miss

    India’s Modi Visits Ukraine This Week, After A Recent Trip To Moscow. Here’s What It Could Mean

    By admin@primenews28

    NEW DELHI (AP) — Indian Prime Minister Narendra Modi is set to meet with Ukrainian…

    Former House Speaker Nancy Pelosi Says She Wanted To ‘Protect’ President Biden’s Legacy

    August 23, 2024

    China Says It Is ‘Seriously Concerned’ About US Nuclear Strategic Report

    August 23, 2024

    How Emily In Paris Is Tackling Sexual Harassment In Fashion

    August 23, 2024
    Stay In Touch
    • Facebook
    • Twitter
    • Instagram
    About Us
    About Us

    Welcome to Prime E-News! Your go-to source for the latest and most relevant news, delivered with accuracy and speed. Stay informed and empowered with our diverse range of curated topics to keep you updated on what matters most. Join us at the forefront of information and insight today.

    Facebook X (Twitter) Instagram
    Most Popular
    Taylor Swift And Olympics Scams Fuelling Fraud
    May 22, 2024387K
    Israel Says South Africa Distorting The Truth In ICJ Genocide Case
    January 12, 2024675
    A High-Altitude Tunnel Is Latest Flashpoint In India-China Border Tensions
    March 22, 2024467
    Latest Post

    India’s Modi Visits Ukraine This Week, After A Recent Trip To Moscow. Here’s What It Could Mean

    August 23, 2024

    Former House Speaker Nancy Pelosi Says She Wanted To ‘Protect’ President Biden’s Legacy

    August 23, 2024

    China Says It Is ‘Seriously Concerned’ About US Nuclear Strategic Report

    August 23, 2024
    © 2025 Primeenews.com
    • Home
    • Politics
    • Sports
    • Technology
    • Entertainment
    • Education

    Type above and press Enter to search. Press Esc to cancel.

    We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.AcceptDeclinePrivacy policy