Rite Aid files for bankruptcy, gets $3.45B commitment

[Kamaji]

Drug retailer Rite Aid files for bankruptcy, gets $3.45B commitment

By Katherine Donlevy
Published Oct. 15, 2023

Rite Aid filed for Chapter 11 bankruptcy Sunday as the US chain pharmacy began massive restructuring to reduce its mounting debt amid countless lawsuits and dwindling sales.

The Philadelphia-based company was awarded a commitment for $3.45 billion in new financing — which is expected to provide liquidity as it faces more than $8.6 billion in debt — as part of the filing.

The bankruptcy process will also allow Rite Aid to resolve over a thousand federal, state and local lawsuits alleging it oversupplied opioids in an “equitable manner,” the company said in a release.

Rite Aid also appointed a new CEO and chief restructuring officer Sunday as it moves through the bankruptcy proceedings.

Jeffrey Stein — who founded Stein Advisors, a financial advisory firm that focuses on fixing troubled companies — will replace Elizabeth Burr, a Rite Aid board member who had been serving as interim CEO since January.

“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 said in a statement.

“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.”

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Source:  https://nypost.com/2023/10/15/drug-retailer-rite-aid-files-for-bankruptcy-gets-3-45-bln-commitment/

[GtHawk]

There's 3.45 billion flushed down the commode

[Kamaji]

There's 3.45 billion flushed down the commode

How come?  Just asking, as I don't know the details of the matter or the company's history.

[GtHawk]

How come?  Just asking, as I don't know the details of the matter or the company's history.

It's a personal observation based on history, once upon a time before "Rite Aid" they were Thrifty's and carried more product, kept their stores clean and well stocked....well okay that was a long time ago, but more and more they were ill maintained and poorly stocked and also apparently very lax when it came to pharmacy oversight. I just cannot believe they can recover from all the lawsuits currently against them and a tightening market where even CVS is closing locations. I believe that with all the medicare plans where drugs can be delivered and even Amazon providing a prescription service there just isn't a way they can compete against that, let alone Walmart and Walgreens. So good money after bad delaying the inevitable, I just wonder who is going to really benefit from this cash, some CEO like the one that tanked Sears?

[Drago]

I am still wondering how pharmacies can be sued for dispensing opioid prescriptions that doctors wrote. They would be sued if they DID NOT fill them.