Major US pharmacy chain Rite Aid files for bankruptcy

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Major U.S. pharmacy chain Rite Aid says it has filed for bankruptcy and obtained $3.45 billion in fresh financing as it carries out a restructuring plan while coping with falling sales and opioid-related lawsuits

PHILADELPHIA — Major U.S. pharmacy chain Rite Aid said Sunday that it has filed for bankruptcy and obtained $3.45 billion in fresh financing as it carries out a restructuring plan while coping with falling sales and opioid-related lawsuits.

In 2022, Rite Aid settled for up to $30 million to resolve lawsuits alleging pharmacies contributed to an oversupply of prescription opioids. It said it had reached an agreement with its creditors on a financial restructuring plan to cut its debt and position itself for future growth and that the bankruptcy filing was part of that process.

The plan will “significantly reduce the company's debt” while helping to “resolve litigation claims in an equitable manner,” Rite Aid said.

In March, the Justice Department filed a complaint against Rite Aid, alleging it knowingly filled hundreds of thousands of unlawful prescriptions for controlled substances from May 2014-June 2019. It also accused pharmacists and the company of ignoring “red flags” indicating the prescriptions were illegal.

The Justice Department acted after three whistleblowers who had worked at Rite Aid pharmacies filed a complaint.

Jeffrey Stein, who heads a financial advisory firm, was appointed Rite Aid's CEO as of Sunday, replacing Elizabeth Burr, who was interim CEO and remains on Rite Aid's board.

Earlier this month, Rite Aid notified the New York Stock Exchange that it was not in compliance with listing standards. During a grace period, the company's stock continues to be listed and traded.

The bankruptcy