Rite Aid Files for Bankruptcy — Again
Rite Aid on Monday announced it's filing for bankruptcy for a second time, barely just seven months after the retailer exited Chapter 11 and emerged as a private company. The financially strapped drug store chain said it's looking for a buyer, and re-filing for Chapter 11 bankruptcy protection will help facilitate that process. Rite Aid said it would keep its stores open throughout its bankruptcy. Furthermore, it secured nearly $2 billion in new financing to keep it operational during its bankruptcy.
Rite Aid is a distant third-largest nationwide standalone pharmacy chain in the U.S. — and the seventh largest pharmacy overall, when taking into account big-box chains. It has about 1,250 stores remaining, roughly half of the number it had just two years ago.
Total Retail's Take: According to a statement from Matt Schroeder, Rite Aid’s CEO, the pharmacy chain is seeing meaningful interest from a number of potential national and regional strategic acquirors, which could be the lifeline needed to keep it in business. While its struggles are seemingly more pronounced and dire, Rite Aid isn't the only pharmacy chain facing challenges.
Walgreens Boots Alliance announced in March that it was being taken private in a deal valued up to $24 billion, following a largely disastrous run on the public markets where its market cap has lost billions and more than 1,200 of its locations have closed or plan to close. The transaction is expected to be finalized later this year.
And CVS has closed more than 1,000 stores and undergone thousands of layoffs over the past several months.
