Rite Aid Files for Bankruptcy, Changes Leadership Amid Slowing Sales, Opioid Lawsuits

Under the agreement secured with creditors, the drugstore chain will be given $3.45 billion, providing sufficient liquidity for its restructuring initiative.

The Rite Aid logo is displayed on the exterior of a Rite Aid pharmacy, in San Rafael, Calif., on Sept. 26, 2019. Justin Sullivan/Getty Images

Rite Aid filed for Chapter 11 bankruptcy protection as the company has struggled with slowing sales, mounting debt, and multiple lawsuits alleging the pharmacy chain’s responsibility for the opioid crisis across the United States.

The Philadelphia-based company, which filed for bankruptcy protection on Oct. 15, announced that it would begin a restructuring plan that speeds up its “transformation and long-term success.”