STATEN ISLAND, NY – Rite Aid is preparing to file for Chapter 11 bankruptcy as it faces both federal and state lawsuits over an alleged role in the sale of opioids, The Wall Street Journal reports.
Following the release of the report on Friday, Rite Aid’s stock fell more than 50%, according to published reports.
A source familiar with the matter told Yahoo Finance that the bankruptcy plan is already underway and up to 400 stores are likely to be closed.
In a statement to Yahoo Finance, Rite Aid said: “Since 2021 we have closed 239 stores. Like all retail companies, we regularly review each of our locations to ensure we are meeting the needs of our customers, communities and the wider business.”
Rite Aid operates two stores on Staten Island, 43-68 Amboy Rd., Eltingville, and 2271 Richmond Ave., New Springville. The fate of these stores is currently unknown.
Rite Aid is a full-service pharmacy, which touts its stores as meeting customers’ needs “with a wide range of vehicles that offer convenience,” including retail and delivery pharmacies, as well as services provided by its wholly-owned subsidiaries Elixir and Bartell offered drug and health dialogue.
Visit www.riteaid.com for more information.
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