Large US company with 2,213 branches to declare bankruptcy: Report
American Business with 2,213 Locations Set to File Bankruptcy: Report
A business found at intersections throughout America could be going under.
Rite Aid is preparing to file for bankruptcy, according to Fox Business.
The pharmacy giant will point to its billions of dollars in debt and pending litigation as cause for bankruptcy protections in its upcoming filings.
The drugstore chain has obtained legal counsel for its Chapter 11 filing and is planning on seeking the legal measure to discharge its liabilities in the coming weeks.
Rite Aid’s stock tanked in the aftermath of the bankruptcy reports.
Following the bankruptcy news, Rite Aid’s stock price took a significant hit. Starting the day at $1.45, shares plummeted, closing at just under 71 cents. The company remains tight-lipped, with their senior VP stating, “We do not comment on rumors and speculation.” #StockShock pic.twitter.com/Zy1AXp3Oih
— The Explorer (@TechRealmExpo) August 27, 2023
The company refused to comment on “rumors and speculation” in a statement proceeded to Fox Business.
Rite Aid response to @YahooFinance:
“We do not comment on rumors and speculation.”Drug retailer Rite Aid prepares to file for bankruptcy – WSJ $RAD https://t.co/DVE3i0YLKW
— Anjalee Khemlani (@AnjKhem) August 25, 2023
Rite Aid’s role in the opioid crisis is thought to have played a significant role in its financial woes.
The company’s critics accuse it of oversupplying opioid medication to patients.
Nearly 280,000 Americans died from overdoses on opioid drugs between 1999 and 2021, according to the Centers for Disease Control.
If Rite Aid’s bid for bankruptcy were to be approved by the courts, it would join pharmaceutical manufacturers such as Purdue Pharma and Mallinckrodt in taking the move to avert opioid crisis-related liabilities.
The company doesn’t have a settlement agreement with plaintiffs in its opioid-related lawsuits in place, according to The Wall Street Journal.
Rite Aid is facing lawsuits from the federal government, state governments, and private parties.
The Department of Justice accused the company of violating the Controlled Substances Act and the False Claims Act in a March lawsuit.
The company lists 2,213 locations throughout the United States on its website — pharmacies which potentially could disappear should Rite Aid’s assets be liquidated in bankruptcy.
The billionaire Sackler family — largely considered to have pioneered the use of opioid OxyContin through Perdue Pharma — sought legal immunity from opioid-related lawsuits in a $6 billion settlement that was shot down by the Supreme Court earlier this month, according to CNN.
The post Major American Business with 2,213 Locations Set to File Bankruptcy: Report appeared first on The Western Journal.
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