@RiteAid has filed for #Chapter11 #bankruptcy #protection, a result of a #miserable environment for

@RiteAid has filed for #Chapter11 #bankruptcy #protection, a result of a #miserable environment for #drugstores, #exacerbated by its runner-up status to bigger chains and expensive legal battles for allegedly filling #unlawful #opioid #prescriptions. The bankruptcy was not a surprise, as Rite Aid's bigger rivals, @CVS and @Walgreens, are also facing many of the same problems. They are #closing #stores as @Amazon and #bigbox chains like @Walmart, @Target, and @Costco serve as more customer-friendly alternatives to nationwide pharmacy chains. However, #RiteAid is in much worse financial shape than its competitors and unable to weather the storm that has been beating down on the industry.

Rite Aid filed a notice to the US Securities and Exchange Commission saying it would be unable to file its latest quarterly financial report because it was looking at "strategic alternatives," which is #WallStreet speak for "considering bankruptcy." In that filing, the company said it expected its losses would increase significantly in the past quarter, which is saying something, considering it lost about three quarters of a billion dollars between March 2022 and March 2023 — and another $307 million between March and May this year. Over the past six years, Rite Aid has tallied nearly $3 billion in #losses.

At the beginning of June, the last time the company filed a #financial report, Rite Aid had just $135.5 million of cash on hand -— and $3.3 billion in long-term debt, which exceeded the value of the company's assets by nearly $1 billion. With rising interest rates, that debt wasn't cheap to finance.

Rite Aid has secured $3.5 billion in #financing and #debt reduction agreements from lenders to keep the company afloat through its bankruptcy. It said it would accelerate its pace of store #closures and sell off some of its businesses, including prescription benefit provider @ElixirSolutions. Bankruptcy could also help resolve the company's legal disputes at a vastly reduced cost. As part of the bankruptcy plan, Rite Aid appointed a new CEO, @JeffStein, who will also serve as the head of restructuring and a board member.