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Drugstore chain Rite Aid Corp. submitted for individual bankruptcy Sunday, as it faces billions of bucks of personal debt linked to opioid lawsuits.
In a assertion Sunday night, Rite Support
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explained it will close some “underperforming” stores and declared Jeffrey Stein as its new chief govt and main restructuring officer. Interim CEO Elizabeth Burr will continue to be on the company’s board.
The individual bankruptcy filing experienced been expected for months, and the Wall Street Journal documented in August that Rite Aid was much more than $3.3 billion in debt, owing largely to hundreds of lawsuits related to its distribution of opioid painkillers. The bankruptcy filing stays pending litigation towards the enterprise.
Earlier this thirty day period, the New York Inventory Trade warned Ceremony Aid that it was “no more time in compliance” with the exchange’s bare minimum pricing and valuation expectations, and gave it 6 months for the inventory to get back compliance. Rite Assist shares have plunged about 80% 12 months to date.
Ceremony Assist said Sunday that loan providers will supply $3.45 billion in funding for the chain to continue on running by the chapter 11 individual bankruptcy system.
“With the support of our lenders, we glance forward to strengthening our financial basis, advancing our transformation initiatives and accelerating the execution of our turnaround tactic,” Stein stated in a assertion. “In executing so, we will be even greater equipped to deliver the healthcare solutions and products and services our customers and their families depend on — now and into the long run.”
Rite Assist claimed it would do the job to reduce the outcome of store closures on its shoppers so there is no disruption of solutions, and will transfer influenced staff to various destinations when attainable.
Ceremony Support has about 2,100 retailers and employs around 47,000 people. It has closed a lot more than 200 stores in the earlier pair of years.
Ceremony Help also explained it had arrived at a deal for pharmacy profit-alternatives business MedImpact Health care Methods Inc. to get its Elixer Methods business. A rate for the transaction was not disclosed.
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