Rite Aid, the struggling drugstore chain, has filed for Chapter 11 bankruptcy protection and announced a plan to restructure its debt and close underperforming locations. The company said it reached a deal with creditors on a $3.45 billion financing package that will provide enough liquidity for its turnaround strategy.
The company has been facing slowing sales, mounting losses and lawsuits related to the opioid crisis. It also lowered its fiscal 2024 outlook and warned of losing up to $680 million for the full year.
Rite Aid has appointed Jeffrey Stein as its new CEO and chief restructuring officer. He said he has confidence in the business and the strategy that has been developed in recent months.
Rite Aid faces fierce competition from rivals like CVS and Walgreens, which have expanded their health care offerings, as well as from retailers like Amazon, Walmart and Target, which have attracted customers with lower prices and delivery options.
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