Rite Aid Files for Bankruptcy

Rite Aid has been dealing with declining sales and opioid lawsuits, and, as of Sunday, the major U.S. pharmacy chain has filed for bankruptcy.

Other pharmacies like CVS and Walgreens are facing similar struggles, but according to CNN, “Rite Aid is in much worse financial shape than its competitors.”

Rite Aid had previously filed a notice to the U.S. Securities and Exchange Commission stating that the pharmacy would be unable to file its latest quarterly financial report due to the search for “strategic alternatives,” CNN reported.

Rite Aid has reportedly totaled nearly $3 billion in losses in the past six years. The company, however, has a plan to stay afloat. The plan will “significantly reduce the company’s debt” while helping to “resolve litigation claims in an equitable manner,” Rite Aid said in a statement.

While the pharmacy battles its financial struggles, Rite Aid is also dealing with allegations from the Justice Department. Rite Aid was accused of knowingly filling hundreds of thousands of unlawful prescriptions for controlled substances from May 2014-June 2019. The Justice Department also accused the pharmacy and its workers of ignoring “red flags” that indicated the prescriptions were illegal, NPR reported.