The Wall Street Journal reported Rite Aid, which has long struggled to manage its debts, could file for bankruptcy protection and close 400 to 500 stores.
that Rite Aid was negotiating with creditors about a plan that would have the company file for Chapter 11 bankruptcy and close roughly a quarter of its 2,100 locations. It would either sell the rest, or let its creditors take them over.
Rite Aid told NBC News it is"continuing to work collaboratively and constructively with our financial stakeholders to identify the best path forward to reduce our debt and position the business for continued success."For years Rite Aid has struggled compared to rivals CVS and Walgreens. It's posted weaker sales and struggled with its debt load, which stood at about $3.3 billion as of June 3, and has said it isn't bringing in enough cash to service those debts.
While CVS and Walgreens each have about 9,000 stores, Rite Aid's attempts at expansion were much less successful. After buying the Brooks Eckert chain in 2007 it had a little more than 5,000 stores. It's continued to close and sell locations in the years since as it tried to get out of its financial hole.
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