Rite Aid, the second-largest pharmacy group in Delaware, has again filed for reorganization under Chapter 11 of the U.S. Bankruptcy code.
The Philadelphia-based company made the filing in New Jersey.
Rite Aid Corporation also announced it had agreed in principle with certain of its senior secured noteholders on the terms of a financial restructuring plan to cut its debt. Other creditors would have to come on board.
Rite Aid is facing possible settlements related to the dispensing of opioids. Drug store chains have been battling such cases with states and the federal government.
Rite Aid has struggled for decades after a financial scandal led to a huge write-down and a former CEO being imprisoned. At one time, Rite Aid was the largest pharmacy chain. It grew in Delaware by purchasing regional giant Ekerd’s and Edgehill, the largest drugstore chain in Delmarva.
As its struggles continued, the company sold off a large chunk of its stores to Walgreens but locations in Delaware and other areas, due to antitrust reasons. A plan to sell the remaining stores to a regional pharmacy chain and supermarket chain Albertsons. fell through. Rite Aid has long been the second largest pharmacy chain in Delaware behind Walgreens and Happy Harry’s, which Walgreens later acquired.
Before the Chapter 11 filing, Rite Aid announced plans to close additional stores. Rite Aid recently closed a store in the Route 40 corridor in the Bear-Glasgow area. It still has three stores in that area. The latest filing indicated that area stores slated to close are in the Brookside neighborhood near Newark; Kirkwood Highway west of Wilmington and Elkton, MD.
Rite Aid also named a new CEO and gained an agreement for $3.4 billion in new financing, subject to liquidity standards.
A&G Realty Partners is assisting the Company with its store closing and lease restructuring program. Rite Aid landlords are encouraged to contact A&G Realty Partners through its website, www.agrealtypartners.com.
Chapter 11 filings often make the termination or restructuring of leases easier to accomplish
Rite Aid and certain subsidiaries, including those comprising Elixir Solutions, have filed voluntary petitions for reorganization under Chapter 11. Elixir Insurance is not included in the Chapter 11 process.
Additional information regarding the Company’s court-supervised process is available at www.riteaidrestructuring.com. Rite Aid employs more than 6,100 pharmacists and operates more than 2,100 retail pharmacy locations across 17 states.
