Consumer Law

Rite Aid Prepares to File for Chapter 11 Bankruptcy to Restructure Debts

Rite Aid Corp. is preparing a Chapter 11 bankruptcy filing to restructure debts including opioid liabilities, according to people with knowledge of the matter.

Advisers to the Philadelphia, Pennsylvania-based pharmacy chain have entered confidential discussions to hash out a plan ahead of the filing, said the people, who asked not to be named because discussions are private. The company is still finalizing its plans, which could change, the people added. Rite Aid is one of the largest pharmacy chains in the US, with more than 2,200 locations.

The pharmacy chain has been working to address its debts. In March, the Justice Department argued that Rite Aid knowingly filled hundreds of thousands of unlawful prescriptions for controlled substances. The federal intervention emerged after three whistleblowers who previously worked at Rite Aid pharmacies sued the company in 2019.

Read the source article at Yahoo Finance

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