Rite Aid Files for Bankruptcy as Debt Load, Opioid Risk Rise

Company has deal to sell Elixir pharmacy benefit manager
Firm filed for Chapter 11 in New Jersey, names Stein new CEO

WATCH: From Bed Bath & Beyond to Pyrex and Party City, some of America’s best known brands are declaring bankruptcy. After years of cheap borrowing, the Federal Reserve’s push to curb inflation has also pushed up interest rates—and made the price of debt more expensive. So what does it mean for the economy and which industries are most at risk?Source: Bloomberg

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By Amelia Pollard and Ameya Karve

October 16, 2023 at 2:20 AM UTC

Updated on

October 16, 2023 at 12:34 PM UTC

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US pharmacy chain Rite Aid Corp. filed for bankruptcy in an effort to close unprofitable stores, address lawsuits over its role in the opioid pandemic and rework a debt load of roughly $4 billion.

The company, which began in 1962 as a single drugstore in Scranton, Pennsylvania, employs around 45,000 people across more than 2,000 locations. In 2015, it entered the pharmacy benefit manager business, serving as a middleman between insurers and patients that helps process prescriptions. It’s now planning to sell that business, called Elixir, in bankruptcy.