In 2022, Rite Aid settled for up to $30 million to resolve lawsuits alleging pharmacies contributed to an oversupply of prescription opioids.
from TUE 5:00 PM PDT until WED 5:00 PM PDT, West Slopes North Cascades and Passes, West Slopes North Central Cascades and PassesFILE - A Rite Aid store stands in Brooklyn on Aug. 28, 2023, in New York City. has filed for bankruptcy protection and plans to sell part of its business as it attempts to restructure while dealing with losses and opioid-related lawsuits.
The company also said it expects to receive court approval for several motions it made to support its business. Those include paying employee wages and benefits without interruption. The company also said it still plans to pay vendors in full. The company, like its rivals, also faces financial risk from lawsuits over opioid prescriptions. Rite Aid already has reached several settlements, including one announced last year with the state of West Virginia for up to $30 million.
Deutsche Bank analyst George Hill said in an August note that Rite Aid operates on a much thinner profit margin than its competitors and while it can pay costs to service its debt, it won’t be able to cover principal payments "based on the current trajectory of the business." Rite Aid said MedImpact will serve as the "stalking horse bidder" in a court-supervised sale process.
Rite Aid earlier reported that its revenue fell to $5.7 billion in the fiscal quarter that ended June 3, down from $6.0 billion a year earlier, logging a net loss of $306.7 million.
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