On Sunday, Rite Aid filed for Chapter 11 bankruptcy protection, noting it would restructure to reduce its debt, reports CNBC. The chain has recently come under pressure because of legal retaliation alleging the retailer played a central role in the opioid crisis.
Additionally, the chain has struggled with slowing sales, according to its most recent quarterly report which showed revenue fell to $5.65 billion from $6.01 billion compared to the previous year.
Rite Aid has received a $3.45 billion commitment from some lenders to facilitate liquidity during the bankruptcy process and restructuring plan.
On Sunday, the drugstore appointed Jeffrey Stein as its new CEO, chief restructuring officer, and board member. Stein said he has “tremendous confidence in this business and the turnaround strategy that has been developed in recent months.”
Interim-CEO Elizabeth Burr will remain on the board.
The company joins several others that have also filed for bankruptcy from opioid-crisis-related lawsuits, including pharmaceutical firm Mallinckrodt. Full Story
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