Rite Aid's Bankruptcy Filing Amid Sales Slump and Opioid Litigation

Rite Aid, the drugstore chain, has filed for Chapter 11 bankruptcy protection as it faces slowing sales, mounting debt, and numerous lawsuits related to the opioid epidemic. The company plans to restructure by evaluating its retail footprint and closing underperforming locations. Lenders have agreed to provide $3.45 billion in new funding to support the restructuring efforts. Rite Aid's revenue fell to $5.6 billion in its most recent quarter, and it expects to lose between $650 million and $680 million for the full year. The company has appointed a new CEO and chief restructuring officer to lead the turnaround. Drugstores like Rite Aid have been struggling as consumers increasingly turn to online retailers and larger competitors like CVS and Walgreens. Rite Aid is also facing legal challenges alleging its role in fueling the opioid crisis.