Rite Aid seeks Chapter 11 bankruptcy protection – IOTW Report

Rite Aid seeks Chapter 11 bankruptcy protection

The Street: Rite Aid Corporation  (RAD) – Get Free Report shares extended declines in pre-market trading Monday after the retail pharmacy chain filed for Chapter 11 bankruptcy protection late Sunday, citing slumping sales and litigation costs linked to the nation’s opioid crisis.

The group said it hoped to continue operations as it seeks time from the court process to restructure its debts and strengthen its balance sheet, adding it secured around $3.45 billion in so-called ‘debtor-in-possession’ funding from a group of lenders that will sit atop its existing debts, as well as its shareholders, in the event of a complete company liquidation. 

Rite Aid also appointed turnaround expert Jeffrey Stein to run the group during its Chapter 11 process, which allows companies time to engage creditors under the supervision of a court-appointed judge, to either stabilize its business and re-emerge as a separate entity or seek liquidation. Stein replaces Elizabeth Burr, who was acting as interim CEO following the departure of Heyward Donigan in June. MORE

10 Comments on Rite Aid seeks Chapter 11 bankruptcy protection

  1. Hmmmm. Government sponsored pharmacutical deserts? Govt gonna have to take those over along with the grocery side of businesses? So, govt going to stop food production by farmers, control food distribution thru retail outlets, now same for pharmacies. What could possibly go wrong?

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  2. Sippin’ Coffee

    I was going to skip commenting on this. To much to explain. But since you got us half way there I’ll jump in. They tell me Chemo trashed my kidneys. I put it that way because nothings changed on my end. Still feel the same. Yada Yada. So they took me off all anti inflammatories and prescribed 90 Norco a month. Chemo also did something to my lower back. That’s what I mainly use the Norco for. Take the edge off, that’s about it. My Doc won’t re issue a prescription until exactly 30 days are up. The pharmacy is out of the loop. Let’s talk about one time or new prescriptions. The DOJ is not accusing them of accepting forged prescriptions. The DOJ is accusing them of not reporting you and I when we are in pain. You know, suspicious people. I’m thinking Rite Aide must have done something terrible. Like donate to a Republican. Fuck the DOJ.

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  3. I don’t know about where you live, but around here we’re saturated with drug stores. A few years back they built this huge CVS superstore when there were literally two other drugstores within a mile. It didn’t take long for it to close, now the building has been divvied up into a strip mall, like we don’t have enough of them.

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  4. There is NO opioid “crisis.”
    ALL BULLSHIT; ALL THE TIME.
    The FedGov allows (encourages and profits from) the importation of Cocaine, Heroin, Fentanyl, &c. and legalizes other forms of dope and then pretends to care about the consequences.
    The hypocrisy is staggering.

    I don’t know anything about Rite Aid – but their job is to fill prescriptions – which is what they did and now they’re being punished for it – when the responsibility is clearly the FedGov’s.

    mortem tyrannis
    izlamo delenda est …

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  5. Former neighbor was crippled with arthritis and an arching spine disease. Got on government’s drug abuser radar. Before dying she was bed ridden and blind. HORRIBLE pain. Could not be moved in bed because that made pain worse. Doctors refused to put their names on pain pill prescriptions. Meanwhile we have a president who lets drug cartels through the southern border. The solution? Go after 80-year-old bed ridden blind people in nursing homes.

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  6. We had a Wrong Aid near us that closed down about a year and a half ago. Went there about two times to get some incidentals and never went back. Prices too high, service too low! A local chain of discount Pharmacies that has been around for decades does a much better job!

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