Major US pharmacy chain Rite Aid files for bankruptcy
Associated PressOct 05, 2023
The Facts
Drugstore chain Rite Aid on Sunday filed for Chapter 11 bankruptcy protection, announcing it would start restructuring to significantly reduce debt while it deals with declining revenue and opioid litigation.
By filing Chapter 11, the pharmacy can stay in business while restructuring its debts through a court-monitored process. Rite Aid, which filed in New Jersey, announced Sunday it has financed $3.45B to remain open.
The Spin
Narrative A
While some people have a nostalgic bond to Rite Aid, the company has failed in many different areas. It took out loads of debt while bleeding cash yet continued to go down a path of destruction. Rite Aid simply can’t compete in the modern business environment, and customers will be fine finding an alternative to the decaying drugstore.
Narrative B
While some may not mourn Rite Aid’s self-inflicted bankruptcy, there are many customers who will struggle to have their prescriptions filled. Patients are already dealing with prescription shortages, and the closing of many more stores will be another obstacle for them.
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