Rite Aid is getting ready to close hundreds of stores as it prepares to file for bankruptcy, according to the Wall Street Journal.
The Philadelphia-based retailer has faced a number of recent issues, including a dip in stock price and a slew of lawsuits alleging the company helped fuel the opioid epidemic by knowingly filling hundreds of thousands of opioid prescriptions unlawfully.
If the company were to file for bankruptcy, it would pause the lawsuits and restructure its debt.
Rite Aid accused of unlawfully filling prescriptions
Rite Aid is accused of ignoring red flags in dispensing prescriptions, including some opioids.
Rite Aid has over 2,100 locations around the U.S., and it is speculated that as many as 500 stores could be closed.
According to an internal report obtained by the Wall Street Journal, some bondholders want to liquidate a significant number of stores.
Pharmaceutical companies including Purdue Pharma, Mallinckrodt and Endo Pharmaceuticals have also declared bankruptcy while reaching settlements for similar, opioid-related lawsuits.
Walmart, Walgreens, CVS Ordered To Pay $650M To Rectify Opioid Abuse
This trial was part of a broader constellation of about 3,000 federal opioid lawsuits.
