Debt-ridden Rite Aid recordsdata for chapter, will shut extra shops

The chapter submitting had been anticipated for months, and the Wall Street Journal reported in August that Rite Aid was greater than $3.3 billion in debt, due largely to a whole bunch of lawsuits associated to its distribution of opioid painkillers. The chapter submitting stays pending litigation towards the corporate.

Earlier this month, the New York Stock Exchange warned Rite Aid that it was “no longer in compliance” with the trade’s minimal pricing and valuation requirements, and gave it six months for the inventory to regain compliance. Rite Aid shares have plunged about 80% 12 months thus far.

Rite Aid mentioned Sunday that lenders will present $3.45 billion in financing for the chain to proceed working by means of the chapter 11 chapter course of.

“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,” Stein mentioned in a press release. “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 mentioned it might work to attenuate the impact of retailer closures on its prospects so there isn’t any disruption of companies, and can switch affected employees to completely different places when potential.

Rite Aid has about 2,100 shops and employs round 47,000 folks. It has closed greater than 200 shops previously couple of years.

Rite Aid additionally mentioned it had reached a deal for pharmacy benefit-solutions firm MedImpact Healthcare Systems Inc. to amass its Elixer Solutions enterprise. A worth for the transaction was not disclosed.