Bad news for Rite Aid as they’ve filed for Chapter 11 bankruptcy protection in the state of New Jersey. They said they would start restructuring things and try to reduce their debt. The reached a deal with some creditors on a plan that would evaluate what they’re doing in retail and figure our which stores to close if they’re underperforming. There’s also some lawsuits going on, which are a major contributor to Rite Aid’s decision to file for bankruptcy.
A business news article on CNBC reported further on the Rite Aid bankruptcy situation, saying the following:
Rite Aid also said lenders agreed to extend $3.45 billion in new funding to “provide sufficient liquidity” as it embarks on its restructuring plan. The beleaguered drugstore chain has been grappling with slowing sales, mounting debt and a slew of lawsuits that allege the company helped fuel the nation’s opioid epidemic by oversupplying painkillers.
During its most recent quarter ended June 3, revenue fell to $5.65 billion, down from $6.01 billion in the year-ago period. Its net loss widened to $306.7 million, or $5.56 per share, compared with a net loss of $110.2 million, or $2.03 per share, in the same period a year earlier. As a result of the rough quarter, Rite Aid lowered its fiscal 2024 outlook and warned investors it expects to lose between $650 million and $680 million for the full year, which is slated to end in late February.
It also doesn’t help that crime rates are through the roof in cities where poeple think they can get away with everything. There are so many videos of people walking into stores and stealing bags worth of merchandise in the middle of the day and just walking out the door with it.
It’s like they have no fear of consequences. Hopefully Rite Aid gets their situation under control. And if not, then some other pharmacy will take their spot.