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Rite Aid is prescribing its own remedy for corporate financial health and is leveraging bankruptcy protection to restructure billions in long-term debt, Brian O'Connell reported for TheStreet.
Rite Aid is reportedly preparing to file under Chapter 11 to restructure a $3.3 billion debt load. I Photo: Rite Aid
The drugstore chain is reportedly planning to seek protection from creditors under Chapter 11 of federal bankruptcy law in the coming weeks.
This move is primarily aimed at enabling the company to manage legal battles related to its opioid prescription practices.
The Philadelphia-based company has not commented on the matter, but it is reportedly preparing to file under Chapter 11 to restructure a $3.3 billion debt load. This step would provide some breathing room as it addresses allegations of oversupplying prescription painkillers.
The bankruptcy strategy was first reported in The Wall Street Journal. The Chapter 11 filing comes at a time when Rite Aid's revenues have been declining.
