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☆ Drug retailer Rite Aid files for bankruptcy amid rising debt, opioid litigation
▼ + stars: | 2023-10-16 | by ( Abinaya V | ) www.reuters.com time to read: +2 min

A woman shops inside a Rite Aid store underneath a DeepCam security camera in New York City, New York, U.S., June 25, 2020. Rite Aid, which began as a thrift shop in 1962, became the third largest U.S. chain of drugstores in less than two decades with more than 2,000 retail stores in 17 states. Rite Aid had a total debt of $8.60 billion as of June 3, according to a filing with the U.S. Bankruptcy Court for the District of New Jersey, some of which is due in 2025. It said it will transfer employees at underperforming stores that would be closed to other locations where possible. Rite Aid joins several companies, including Mallinckrodt, that have filed for bankruptcy due to lawsuits over the U.S. opioid crisis.

Persons: Lucas Jackson, Jeffrey Stein, Elizabeth Burr, Leroy Leo, Abinaya Vijayaraghavan, Mariam Sunny, Simon Cameron, Moore, Arun Koyyur Organizations: REUTERS, Rite, U.S, Bankruptcy, District of, Aid, Thomson Locations: New York City , New York, U.S, United States, District of New Jersey, Bengaluru

☆ The rise and fall of pharma bigwig Rite Aid, which couldn't keep up with rivals Walgreen and CVS
▼ + stars: | 2023-10-16 | by ( Nidhi Pandurangi | Grace Dean | ) www.businessinsider.com time to read: +5 min

Rite Aid filed for voluntary Chapter 11 bankruptcy on Sunday following slumping sales and a series of lawsuits. Rite Aid, which has over 47,000 employees, has struggled in recent years to compete against larger peers like CVS and Walgreens Boots Alliance, as well as Amazon. Rite Aid has faced growing competition from direct-to-consumer pharmacy startups as well as medication deliveries from the likes of Amazon and Uber. Rite Aid also experienced supply chain challenges after changing supplier for many of its perishable consumer goods and shrink "continued to be a significant headwind," Burr said. Representatives for Rite Aid did not immediately respond for Insider's request for further comment beyond sending statements about Stein's appointment and its Chapter 11 bankruptcy filing.

Persons: it's, —, Jeffrey S, Stein, Elizabeth Burr, Heyward Donigan, Donigan, Burr, there'd Organizations: Service, Rite, Walgreens Boots Alliance, Rite Aid, pharma, Aid, Discount, Rite Aid Corporation, PayLess, Walgreens, Albertsons, New York Times Locations: New Jersey, Scranton , Pennsylvania

☆ Drug retailer Rite Aid files for bankruptcy, gets $3.45 bln commitment
▼ + stars: | 2023-10-16 | by ( ) www.reuters.com time to read: +2 min

A woman shops inside a Rite Aid store underneath a DeepCam security camera in New York City, New York, U.S., June 25, 2020. The bankruptcy process will allow Rite Aid to resolve litigation claims in an "equitable manner", the company said. Rite Aid has appointed Jeffrey Stein as its new CEO and chief restructuring officer, replacing interim CEO Elizabeth Burr. Rite Aid has also reached an in-principle agreement with some of its senior secured noteholders that would significantly reduce its debt. MedImpact will serve as the 'stalking horse bidder' in a court-supervised sale process, Rite Aid said.

Persons: Lucas Jackson, Jeffrey Stein, Elizabeth Burr, Stein, Burr, noteholders, Abinaya Vijayaraghavan, Mariam Sunny, Sriparna Roy, Shweta Agarwal, Pooja Desai Organizations: REUTERS, Rite Aid Corp, U.S, Aid, Walgreens Boots Alliance, CVS Health, MedImpact Healthcare Systems, Solutions, Rite Aid, Bankruptcy, District of, Thomson Locations: New York City , New York, U.S, District of New Jersey, Bengaluru

☆ Rite Aid just filed for bankruptcy and could be closing more of its 2,100 stores
▼ + stars: | 2023-10-16 | by ( Nidhi Pandurangi | ) www.businessinsider.com time to read: +2 min

Rite Aid filed for bankruptcy in New Jersey on Sunday. AdvertisementAdvertisementRite Aid filed for voluntary Chapter 11 bankruptcy in New Jersey on Sunday — a move that could see the drugstore chain close more of its 2,100 stores. Rite Aid has received a commitment for $3.45 billion in new financing from some of its lenders. AdvertisementAdvertisementIn March, the US Justice Department sued Rite Aid, accusing the company of missing "red flags" when pharmacists filled opioid prescriptions. A company spokesperson told the Wall Street Journal: "We expect to negotiate a resolution of the opioid-related lawsuits with the various parties involved."

Persons: —, Jeffrey S, Stein, Elizabeth Burr Organizations: Service, Aid, US Justice Department, Rite Aid, Wall Street Locations: New Jersey

PHILADELPHIA (AP) — Major U.S. pharmacy chain Rite Aid said Sunday that it has filed for bankruptcy and obtained $3.45 billion in fresh financing as it carries out a restructuring plan while coping with falling sales and opioid-related lawsuits. In 2022, Rite Aid settled for up to $30 million to resolve lawsuits alleging pharmacies contributed to an oversupply of prescription opioids. The plan will “significantly reduce the company's debt” while helping to “resolve litigation claims in an equitable manner,” Rite Aid said. The Justice Department acted after three whistleblowers who had worked at Rite Aid pharmacies filed a complaint. Earlier this month, Rite Aid notified the New York Stock Exchange that it was not in compliance with listing standards.

Persons: Jeffrey Stein, Elizabeth Burr Organizations: PHILADELPHIA, —, Rite Aid, Aid, Justice Department, The, New York Stock Exchange, U.S . Securities, Exchange Locations: — Major, New Jersey

A Rite Aid store stands in Brooklyn on August 28, 2023 in New York City. Rite Aid filed for Chapter 11 bankruptcy protection in New Jersey on Sunday and said it would begin restructuring to significantly reduce its debt. Rite Aid also said lenders agreed to provide $3.45 billion in new funding to "provide sufficient liquidity" as it embarks on its restructuring plan. During its most recent quarter ended June 3, revenue fell to $5.6 billion, down from $6.01 billion in the year-ago period. Rite Aid Chairman Bruce Bodaken said in a statement, "Jeff is a proven leader with a strong track record of guiding companies through financial restructurings.

Persons: hasn't, Jeffrey Stein, Elizabeth Burr, Bruce Bodaken, Jeff, Stein Organizations: New York City . Rite Aid, Aid, Rite Locations: Brooklyn, New York City, New Jersey

Rite Aid, one of the largest U.S. pharmacy retailers, stumbled under its high debt, revenue declines, increased competition, and opioid litigation, according to its court filings. Founded in 1962, Rite Aid employs 45,000 people at more than 2,000 retail stores in 17 states, and will remain open for business during the bankruptcy. Rite Aid, which has denied wrongdoing, said it hopes to reach an "equitable" settlement of opioid litigation in bankruptcy. A woman shops inside a Rite Aid store underneath a DeepCam security camera in New York City, New York, U.S., June 25, 2020. Rite Aid closed 200 stores before its bankruptcy, and it expects to close more as its Chapter 11 case proceeds.

Persons: Lucas Jackson, McKesson, Jeffrey Stein, Elizabeth Burr, Leroy Leo, Abinaya Vijayaraghavan, Mariam Sunny, Arun Koyyur, Marguerita Choy, Bill Berkrot Organizations: Rite Aid, Rite, Endo International, REUTERS, Bankruptcy, District of, MedImpact Healthcare Systems, Elixir ., Rite Aid . Rite, Aid, Thomson Locations: U.S, New York City , New York, District of New Jersey, Bengaluru

☆ Senate Democrats urge Walmart, Costco, Albertsons and Kroger to sell abortion pill mifepristone
▼ + stars: | 2023-03-14 | by ( Spencer Kimball | ) www.cnbc.com time to read: +4 min

Erin Hooley | Tribune News Service | Getty ImagesSenate Democrats called on Walmart , Costco , Albertsons and Kroger to sell the prescription abortion pill mifepristone and clearly let customers know how to get it at their pharmacies. The companies have not publicly stated yet whether they plan to sell mifepristone at their pharmacies. The 17 senators told Walmart CEO Doug McMillon, Costco CEO Craig Jelinek, Albertsons CEO Vivek Sankaran and Kroger CEO Rodney McMullen that they are frustrated the companies have not yet publicly indicated whether they will sell mifepristone. Major retailers in the U.S. have been thrust in the middle of the nation's deep divisions over abortion as they weigh whether to sell mifepristone. Walgreens has come under fire after it told the GOP attorneys general that it would not sell mifepristone in their states.

☆ Rite Aid CEO Heyward Donigan Leaves Drugstore Chain
▼ + stars: | 2023-01-09 | by ( Dean Seal | ) www.wsj.com time to read: 1 min

Rite Aid Corp. on Monday said that President and Chief Executive Heyward Donigan has left the drugstore chain, whose shares have been hovering near all-time lows as losses mount. The company tapped board member Elizabeth Burr as an interim CEO as it conducts a search for a new leader. Ms. Burr is a health industry veteran, having previously served as chief innovation officer at the health insurance giant Humana Inc.

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