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The move by Rite Aid comes amid declining sales and a rise in debt, which hit $3.3 billion, according to midyear filings.
The company said in an announcement on Sunday, Oct. 15 that in connection with the filing, it has received a commitment for $3.45 billion in new financing from some of its lenders.
"This financing is expected to provide sufficient liquidity to support the company throughout this process," Rite Aid said.
Rite Aid is one of a number of drugstore chains facing litigation related to the deadly abuse of opioids and more than a thousand lawsuits have been filed claiming Rite Aid illegally prescribed painkillers.
In a separate announcement on Sunday, Rite Aid announced the appointment of Jeffrey S. Stein as chief executive officer, chief restructuring officer, and a member of the company’s board of directors, effective immediately.
“Rite Aid has served customers and communities across our country for more than 60 years, and the important actions we are taking today will enable us to move ahead as a stronger company," said Stein, who is the founder of a financial advisory firm tasked with rescuing troubled companies. "With the support of our lenders, we look forward to strengthening our financial foundation, advancing our transformation initiatives, and accelerating the execution of our turnaround strategy."
Founded 61 years ago in Scranton, Pennsylvania, Rite Aid moved its headquarters to Philadelphia in 2022.
This continues to be a developing story. Check back to Daily Voice for updates.
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