Troubled Rite Aid proposes to close up to 500 stores as part of bankruptcy plan: report
Rite Aid is negotiating with creditors over the terms of a bankruptcy plan that would include liquidating a significant portion of its more than 2,100 drugstores The Wall Street Journal reported Friday, citing people familiar with the discussions.
According to the report, the company has proposed closing around 400 to 500 stores in bankruptcy and either selling the remaining stores or letting creditors take them over.
Because discussions are ongoing, no decisions have been made at this time, Rite Aid said.
The Philadelphia-based company faces more than $3.3 billion in debt and over a thousand federal lawsuits over alleged oversupply of opioids, the Journal reported. The company operates more than 2,330 stores in 17 states, although it is much smaller than competitors such as Walgreens Boots Alliance and CVS Health.
