Rite Aid and Mallinckrodt: Two Major Companies Facing Bankruptcy

Rite Aid, one of the largest pharmacy chains in the US, is reportedly preparing to file for Chapter 11 bankruptcy to restructure its $3.3 billion debt and address lawsuits related to the unlawful filling of opioid prescriptions. The filing would pause the claims against the retailer and potentially consolidate them in one place. Rite Aid has been facing financial pressures, reporting a net loss of nearly $307 million in the last quarter. The company's bankruptcy risk potential has been deemed significantly higher than average, and it has made targeted reductions to its expenses in an effort to achieve growth in the coming years.