Rite Aid Bankruptcy Judge Sets March 1 Deadline to Reorganize

  • Retailer says it faces liquidation if restructuring case slows
  • Lower-ranking creditors complain fast pace leaves them behind
A Rite Aid store in the East Village neighborhood of New York 23.Photographer: Angus Mordant/Bloomberg
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Bankrupt pharmacy chain Rite Aid Corp. has until March 1 to complete its turnaround under a timeline approved by a federal judge on Tuesday.

US Bankruptcy Judge Michael Kaplan scheduled a final hearing that day to decide the fate of the company’s reorganization proposal. The ruling comes after complaints that the case was moving so fast it threatened to harm lower-ranking creditors, including people who claim Rite Aid wrongly sold addictive pain killers.