Drugstore chain Rite Aid Corp. has filed for bankruptcy, the Wall Street Journal reported Sunday night.
According to the Journal, Rite Aid
RAD,
will close more of its stores and plans to name a new chief executive. Interim CEO Elizabeth Burr will remain on the company’s board, the Journal said.
The bankruptcy filing had been expected for months, and the Journal reported in August that Rite Aid was more than $3.3 billion in debt, due largely to hundreds of lawsuits related to its distribution of opioid painkillers. The bankruptcy filing stays pending litigation against the company, according to the Journal.
Earlier this month, the New York Stock Exchange warned Rite Aid that it was “no longer in compliance” with the exchange’s minimum pricing and valuation standards, and gave it six months for the stock to regain compliance. Rite Aid shares have plunged 80% year to date.
According to the Journal report Sunday, lenders will provide financing for Rite Aid to continue operating through the chapter 11 bankruptcy process.
Rite Aid has about 2,100 stores and employs around 47,000 people. It has closed more than 200 stores in the past couple of years.
Rite Aid did not immediately respond to a request for confirmation or comment.
Read the full article here