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Aid Rite files for bankrupt
The United States Pharmacy series Rite Aid submitted bankruptcy protection on Monday for the second time in two years, according to the court report.
Traditional retailers such as Rite Aid, Walgrens and CVS are struggling with profit margins on prescribed and increasing competition from retail giants such as Walmart and Amazon, forcing hundreds of closure in stores throughout the country.
Walgreens, another major player in this sector, recently agreed to a $ 10 billion in a purchase of SYCAMORE Partners for private stocks – a sharp drop in his evaluation of $ 100 billion a decade ago, highlighting the financial challenges and the deep strategy facing the industry.
The previous bankruptcy of Rite Aid enabled the company to reduce $ 2 billion in debt, close hundreds of weak sites, sell the ELIXIR pharmacy unit, and give a strike with major stakeholders including lenders and MCKESSON drug distribution partner.
This deposit also resolved many of the lawsuits that accuse the failure company of preventing the impossible to dispense with opioid drugs, a legal burden that was full of its operations.
However, despite these efforts, Rite Aid was still out of bankruptcy in 2024 with $ 2.5 billion of debt under the control of its lending. In its latest files, the company included assets and opponents estimated between one billion dollars and 10 billion dollars.
According to Bloomberg News, who cited an internal memorandum of CEO Matthew Schroider, Rite Aid was unable to secure the required additional financing to maintain business. The memorandum also noticed plans to reduce the workforce in its company’s offices in Pennsylvania.
The company, which was running about 2000 stores in 2023, now has 1,250 locations worldwide, with particularly sharp declines in states such as Ohio and Michigan after the last closure rounds.
