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Rite Aid (NYSE:RAD) filed for Chapter 11 bankruptcy protection.
The drugstore chain filed for bankruptcy in New Jersey, according to media reports on Sunday night, which cited a court filing.
Lenders will provide Rite Aid (RAD) with new financing during its Chapter 11 filing, a Rite Aid spokeswoman told the WSJ.
Philadelphia-based Rite Aid listed (RAD) both assets and liabilities in the range of $1 billion to $10 billion in the Chapter 11 petition, according to Bloomberg.
The Rite Aid (RAD) bankruptcy comes as the drugstore chain, one of the biggest in the country, has been burdened by billions of dollars of debt. Bloomberg on Thursday reported that Rite Aid (RAD) was in talks with Bank of America Corp. to secure a loan to tide over a potential Chapter 11 bankruptcy process.
The WSJ reported in August that the drug retailer planned to file for Chapter 11 bankruptcy to restructure its over $3 billion in debt, including its opioid-related liabilities. Reorg first reported in July that Rite Aid (RAD) was considering a Chapter 11 filing to address liabilities related to its opioid exposure.
With Rite Aid’s bankruptcy filing, it joins drugmakers Mallinckrodt (OTC:MNKTQ), Endo (OTC:ENDPQ), and Purdue Pharma, which declared bankruptcy due to opioid litigation.
Rite Aid (RAD) short interest is 33.5%.
