By Elisa
Rite Aid is negotiating with creditors over the terms of a bankruptcy plan that would include liquidating a substantial portion of its more than 2,100 drugstores, the Wall Street Journal reported Friday, citing people familiar with the talks.
The company has proposed to close roughly 400 to 500 stores in bankruptcy, and either sell or let creditors take over its remaining operations, according to the report.
Given the conversations remain ongoing, no decisions have been made at this time, Rite Aid said.
The Philadelphia-based company faces more than $3.3 billion in debt and over a thousand federal lawsuits alleging it oversupplied opioids, the Journal reported. The company operates more than 2,330 stores in 17 states, although it is much smaller than rivals such as Walgreens Boots Alliance and CVS Health.
