Rite Aid, one of the largest drugstore chains in the United States, is allegedly preparing to pursue bankruptcy protection, which could result in over 300 stores closing. September reports rumor that Rite Aid has been negotiating with creditors about a plan that would result in filing Chapter 11 and closing about a quarter of its 2,100 locations. No final decision is made, but negotiations are ongoing on how many stores they may have to close. Unfortunately, Rite Aid has been battling competition with CVS and Walgreens for years. The rivalry has resulted in weaker sales and incurring debts. As of June 3, its debt was about $3.3 billion and after its quarterly filing the same month, it announced it is expected to lose $650 million to $680 million this current fiscal year. Further, Rite Aid’s endeavors to expand their locations have been unsuccessful compared to the competition and buying the Brooks/Eckerd chains was able to get them a little over 5,000 locations. Nevertheless, in 2015, Walgreens bought Rite Aid, and 865 stores went to another competitor, Fred’s. However, the Federal Trade Commission stopped the deal, and Rite Aid sold over 2,000 stores to Walgreens, leaving Fred’s part of the sale in shambles. Recently, Rite Aid tried to sell itself to Albertsons grocery chain, but shareholder opposition blocked the deal.
Source: Rite Aid chain reportedly could sell up to 500 stores in bankruptcy plan