Shares of Rite Aid Corp (RAD) are experiencing a severe decline on Monday as reports emerge that the company intends to close hundreds of stores as part of its bankruptcy plan.
What You Should Know: According to sources familiar with the discussions, Rite Aid plans to shut down approximately 400 to 500 of its 2,100 stores as it undergoes bankruptcy. Furthermore, the company is considering selling off or transferring control of its remaining operations to creditors.
There are indications that certain creditors are pushing for even more store closures.
This news follows Rite Aid’s current debt of over $3.3 billion and its ongoing legal battles involving more than a thousand lawsuits alleging the company’s oversupply of opioids. Rite Aid has firmly denied these accusations.
Rite Aid Corp operates a substantial chain of retail drugstores throughout the United States.
Interested in financial news? Check out Morgan Stanley’s strategist advocating a defensive stance in response to shifting market dynamics.
RAD Price Action: Rite Aid’s stock has plunged by more than 85% since the beginning of this year. At the time of writing, the shares were down 20.8% and valued at 47 cents per share, according to Benzinga Pro.
Photo: Mike Mozart from Flickr.