Rite Aid is preparing to file for chapter 11 bankruptcy in the coming weeks amidst federal and state lawsuits over the company’s alleged role in the opioid crisis, shares The Wall Street Journal.
The filing would cover Rite Aid’s over $3.3 billion debt load and legal allegations that it oversupplied prescription painkillers, according to those familiar with the topic.
The company has struggled to keep up with its debt over the last few years. From 2015 to 2018 it tried to merge with Walgreens Boots Alliance followed by Albertsons. Its latest earnings reports revealed the retailer’s revenue declined six percent in the last quarter ending June 3. On Friday, its stock price fell 51 percent. Full Story (Subscription Required)
Related: Rural Areas Concerned Over Fry’s, Safeway Merger; Dollar Tree, Family Dollar Agree to OSHA Settlement
Image: Rite Aid