What You Should Know:
– Rite Aid filed for Chapter 11 bankruptcy protection on Sunday to address its $4B debt load and legal battles for allegedly filing unlawful opioid prescriptions.
– Last Thursday, Rite Aid filed a notice to the US Securities and Exchange Commission (SEC) stating an inability to file its latest quarterly financial report due to exploring “strategic alternatives.”
Interim Plans During Bankruptcy
To support itself during the bankruptcy process, Rite Aid established $3.45B in debt reduction agreements and sold off Elixir to PBM company MedImpact Healthcare Systems Inc. for $575M in cash. In addition, Rite Aid is working with A&G Realty Partners to close more stores to cut down on rent costs of its more than 2,100 locations. Rite Aid appointed a new CEO, Jeff Stein to serve as the head of restructuring and a board member as the company fights to stay in business.
