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Rite Aid is reportedly considering filing for bankruptcy again after its recent financial restructuring failed to stabilize the company. According to a report by The Wall Street Journal, the pharmacy chain is exploring the possibility of selling some or all of its businesses as an alternative to filing for Chapter 11. If a sale does not occur, Rite Aid may have to liquidate more of its stores.
The company previously emerged from Chapter 11 bankruptcy last year, operating as a private company after closing hundreds of stores and selling its pharmacy benefit company, Elixir. During its last bankruptcy filing in October 2023, Rite Aid reported $750 million in losses and $24 billion in revenue for the fiscal year ending March 2023. At that time, the company operated 2,000 pharmacies.
Rite Aid has not yet responded to requests for comment on the potential bankruptcy filing. The company has been working to negotiate settlements with its lenders, drug distribution partner McKesson, and other creditors. The outcome of these negotiations and the potential sale of its businesses will determine the company's next steps. If Rite Aid fails to meet its debt targets, it may be forced to file for bankruptcy once again.