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Pharmacy chain Rite Aid has filed for bankruptcy and secured $3.45 billion in financing to restructure the company. Despite technological improvements in online payments, website user experience, and optimized checkout flows, Rite Aid has experienced falling sales and opioid-related lawsuits, leading to the need for a restructuring plan.
The plan seeks to lower the company's debt and settle ongoing lawsuit claims. In addition to the bankruptcy filing, the company has also changed leadership, with Elizabeth Burr replaced by Jeffrey Stein as CEO.
Despite the bankruptcy filing and noncompliance with listing standards, Rite Aid will continue with business operations and SEC reporting requirements as usual. The company intends to pay wages and other costs as normal but will close some "underperforming" stores among its more than 2,100 pharmacies.
Rite Aid intends to work with landlords to assess their footprint nationwide.