Second time’s the charm? That’s what Rite Aid seems to be hoping.
The retail pharmacy is reportedly considering filing for another bankruptcy as it attempts to get back on its feet after years of financial complications, according to the Wall Street Journal. The Philadelphia-based retailer is also reportedly thinking of selling individual assets to avoid a second Chapter 11 in less than two years.
Ride Aid initially filed for bankruptcy in October 2023 after struggling to keep up with competitor retail pharmacies CVS and Walgreens. It was also dealing with lawsuits about its pharmacy benefit manager, Elixir, as well as 1,600 opioid-related lawsuits.
The company emerged from bankruptcy in September 2024 after reducing its debt by $2 billion.
However, WSJ reported the company is now working with Paul Weiss, a global law firm, to discuss additional options, as further liquidation of its assets—either with or without another bankruptcy—looks to be on the table.
More loans? Bloomberg reported Rite Aid is also seeking a debtor-in-possession loan, which is financing that would allow the company to stay open amid a second bankruptcy. The report added the company may sell some stores and close others, and is reportedly working with investment firm Guggenheim Securities to hammer out those details.
Rite Aid has already closed about 800 of the 2,000 stores it had before filing for bankruptcy in 2023.
In addition to this latest news, Bloomberg also reported in March the company was allegedly looking for a loan that would allow it to add inventory to its stores in exchange for hitting financial targets.
Rite Aid did not respond to a request for comment by the time of publication.
In other news. Earlier this week, Walgreens, one of Rite Aid’s top competitors, reached a $300 million settlement with the federal government to resolve allegations it had illegally doled out opioids and other controlled substances to patients. This comes as the pharmacy retailer is in the process of being acquired by private equity firm Sycamore Partners.
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