Is Rite Aid pursuing another Chapter 11 filing?

Things looked pretty stable for RITE AID after emerging from an October 2023 bankruptcy that lowered its store count from 2,000 to 1,300. Until it didn’t. And Rite Aid is just one of the top three chains in the troubled drugstore industry facing an existential crisis.

Recent reports indicate that Rite Aid is pursuing a sale of some or all of its business as a potential alternative to another chapter 11 filing, after the previous bankruptcy restructuring failed to put the drugstore chain on a sustainable path.

Unfortunately, the entire drugstore industry is ailing and no prescription is available to alleviate symptoms of financial distress.

CVS Pharmacy, Walgreens and many independent drugstores are also closing thousands of stores due to factors like increased competition from Amazon, Walmart and Costco Wholesale, declining profits from lower reimbursement rates for prescription drugs, and a steep sales decline from overpriced front-end merchandise.

Read more: Rite Aid Weighs Repeat Bankruptcy Filing (The Wall Street Journal)