Overview

• Rite Aid has filed for Chapter 11 bankruptcy for the second time in less than two years, citing sustained financial strain and liquidity issues.
• The company plans to sell or close its remaining stores and market its prescriptions, pharmacy inventory, and other assets to the highest bidders.
• Approximately 1,240 stores remain operational, and Rite Aid has secured nearly $2 billion in debtor-in-possession financing to continue serving customers during the proceedings.
• Corporate job cuts have been announced at facilities in Etters and Philadelphia, Pennsylvania, with layoffs expected to be permanent as operations wind down.
• CEO Matt Schroeder attributed the bankruptcy to rising costs, economic pressures, and challenges securing additional capital from lenders.