Finance
One of the Nation’s Most Popular Stores Just Declared Bankruptcy
Clear Facts:
- Rite Aid filed for bankruptcy protection and plans to shutter underperforming stores.
- The company aims to address litigation claims tied to the U.S. opioid crisis “equitably.”
- Rite Aid secured a $3.45 billion commitment from lenders to assist during bankruptcy.
In a significant blow to the American retail landscape, Rite Aid has announced its bankruptcy filing this week.
Simultaneously, the drugstore chain declared its intention to shut down stores that aren’t meeting expectations.
This drastic step has been attributed to a mounting pile of lawsuits pointing fingers at Rite Aid for its alleged role in exacerbating the U.S. opioid crisis.
The company, in its official statement, mentioned that this move allows them to approach litigation claims in an “equitable manner.”
As a lifeline during this challenging phase, Rite Aid revealed it had secured a sizable commitment of $3.45 billion from certain lenders, ensuring that they have enough liquidity to navigate the bankruptcy waters.
Tracking the origins of Rite Aid takes us back to 1962 when it started its journey as a humble thrift shop.
However, its meteoric rise saw it becoming the third-largest drugstore chain in the U.S. within a mere two decades, boasting an expansive footprint of over 2,000 stores spread across 17 states. But the company’s reputation was significantly tarnished as it got mired in a slew of lawsuits.
These legal actions blamed pharmacies, like Rite Aid, for flooding the market with prescription opioids, a move that has had devastating consequences.
The U.S. has seen over a million deaths from drug overdoses since 1999, with these opioids playing a pivotal role.
Digging into Rite Aid’s financials, as of June 3, the company was buried under a staggering debt of $8.60 billion.
This information, divulged in the documentation presented to the U.S. Bankruptcy Court for the District of New Jersey, further indicated looming payments due in 2025. In terms of assets, Rite Aid’s holdings amount to $7.65 billion.
On the corporate front, Jeffrey Stein has taken the reins of the company as the new CEO and the chief restructuring officer. He takes the baton from interim CEO Elizabeth Burr.
Amidst the anticipated store closures, Rite Aid has provided a glimmer of hope for its workforce, expressing its intent to relocate employees from these underperforming outlets to other operational locations.
The dark shadow of the U.S. opioid crisis continues to loom large over businesses.
Rite Aid now finds itself in the company of several other firms, Mallinckrodt being a notable mention, that have been driven to bankruptcy due to the avalanche of lawsuits related to this national epidemic.
We want to know what you think! Share your thoughts in the comments below.
Jeremy
October 17, 2023 at 6:59 pm
Pharmacies like Rite Aid fill the prescriptions written by Doctors. Blaming pharmacies or pharmacists for the opioid epidemic is like blaming McDonald’s for the rampant obesity problem in this country.
Al Dee
October 19, 2023 at 4:01 pm
Exactly Jeremy! — The government suing pharmacies for what doctors order them to do is just another example of our government going rogue communist with the full intention of bringing the country down – one piece at a time. The exact same is the government blaming the firearms industry and the inanimate firearm itself for people killing other people – instead of fully prosecuting those that harm other people for what they’ve done – but just spanking them on the hand and release them to do it again. It’s all by evil intentional design – kill America by a thousand cuts.
captain blasto
October 19, 2023 at 9:46 pm
Lew Lehrman ran for governor of New York as a Republican years ago. This is Lew”s company. this is not about Rite Aid, or opioids. It is a very thinly veiled attack on anyone who is not a communist- Democrat.
Guy Greenwood
November 10, 2023 at 8:07 pm
Right Aid can start by selling it’s
Thrifty brand to ANY VIABLE company producing ice cream, EXCEPT companies producing ice cream.
Let remaining Right Aid stores keep it as a franchise. It tastes better, and less expensive.
I’ve even seen it sold in the largest local casino S Las Vegas Blvd
It’s far better the best tasting American style ice cream at a reasonable price.
Other than Las Vegas, I don’t ko
Willie T
December 10, 2023 at 10:04 am
Thanks to Bidenomics.
David
December 19, 2023 at 7:06 am
Absolutely! Our Declaration of Independence must be implemented. Remove ALL Democrats and RINOS. Gitmo must have room for all of them. While they wait to be brought in front of a firing squad. According to the law, treason is met with death. Our Marxist Government has gone full rogue. The DoI states that they must be removed and replaced, nowhere in that document does it say anything about an election! They must be removed ASAP, we cannot wait for another Democrat steal!
WTP has been the victim of this Faux Potus and his entire administration (likely run by Soros and BHO) must be ousted. No warning is required to enter their chambers bind them all together place them in a paddywagon and deposit them at GITMO. No trial is needed as their actions against the country and its people speak volumnes of their criminal Marxist activities!
Eloise
December 19, 2023 at 7:12 am
I’ve been a Rite Aide customer for years. I have Type 2 diabetes. And high blood pressure and am on several prescribed medications to control these health issues. The Rite A8de pharmacy has also bbeen where I’ve gotten all my flu shots and other necessary shots and vaccines. I hope my local Rite Aide is not one of those marked for closure. Punishing Rite Aide for filling doctor’s opioid prescriptions is unfair, and I hope Rite Aide can prove it’s case in court. Drug addicts blame everyone but themselves for their addictions, and the doctors who write the prescriptions for ‘patients’ they know are over-using an opioid are enablers. Not Rite Aide.