Rite Aid reportedly considering repeat bankruptcy filing

Rite Aid is reportedly considering a possible repeat bankruptcy after its recent financial restructuring was unsuccessful, per a Wall Street Journal and Reuters report.

The retailer also has been pursuing a sale of some or all of its businesses as a potential alternative to a Chapter 11 filing, the WSJ report said, citing people familiar with the matter.

If a sale doesn't materialize either inside or outside of bankruptcy, Rite Aid "stands at risk of liquidating more of its footprint," the report added.

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Rite Aid did not immediately respond to a Drug Store News request for comment.

The company emerged from Chapter 11 bankruptcy and completed its financial restructuring last year, operating as a private company, the report noted.

The pharmacy has used its bankruptcy to close hundreds of stores, sell its pharmacy benefit company Elixir and negotiate settlements with its lenders, drug distribution partner McKesson and other creditors, per the report.

Rite Aid filed for Chapter 11 in October 2023, after reporting $750 million in losses and $24 billion in revenue for the fiscal year ended March 2023. It operated 2,000 pharmacies at the time of its bankruptcy, the report noted.