Rite Aid's Renewed Bid for Stability

Rite Aid is seeking bankruptcy protection again to sell most of its assets. The company filed for Chapter 11 in October 2023, planning to restructure and sell parts of its business. Post-bankruptcy, Rite Aid emerged as a private entity with reduced debt and optimized operations.

Rite Aid is once more navigating the waters of bankruptcy protection as the drugstore chain endeavors to divest the majority of its assets.

On Monday, Rite Aid announced that its stores will continue operations as it commences Chapter 11 bankruptcy proceedings. The move follows an initial filing for protection in October 2023, aimed at selling off sections of its business and restructuring operations.

The company, which operated over 2,300 stores across 17 states, had anticipated that a Chapter 11 reorganization would significantly reduce its debt and settle ongoing litigation. Rite Aid's pharmacy benefits management division, Elixir Solutions, was sold for approximately $576 million. Emerging as a privately-held entity, Rite Aid touted a streamlined store presence, increased operational efficiency, and improved financial resources.

(With inputs from agencies.)