Commentary: Rite Aid Hasn't Treated Its Real Ills Yet

It was the best news Rite Aid Corp. investors had gotten in a long time. On Oct. 18, the drugstore chain announced that Chairman and Chief Executive Martin L. Grass was resigning and that the company was getting a much-needed cash infusion from a former director. Grass's overly ambitious expansion, along with aggressive accounting, has thrown the retailer into a tailspin. The company also announced that, after extensive review by the Securities & Exchange Commission, it will revise its earnings reports for the past three fiscal years for a second time--reducing pretax earnings by $500 million.

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