Rite Aid is once again assessing a potential Chapter 11 filing after efforts to stabilize the business post-restructuring fell short, according to the Wall Street Journal.
The embattled pharmacy retailer is also said to be exploring the sale of part or all of its operations as it seeks a viable path forward.
The company, which previously filed for bankruptcy in October 2023, emerged in September 2024 having shed roughly $2 billion in debt and closed hundreds of stores.
It also sold its pharmacy benefits business, Elixir, as part of the restructuring process aimed at securing long-term financial health.
However, the turnaround has failed to produce the desired results.
“If a sale doesn’t materialize either inside or outside of bankruptcy, Rite Aid stands at risk of liquidating more of its footprint,” the WSJ reported.
Since its restructuring, Rite Aid’s store count has dropped significantly.
While it operated more than 2,000 stores at the time of its initial bankruptcy filing, the company now lists just over 1,300 locations on its website.
Rite Aid has reportedly retained the services of law firm Paul, Weiss as it considers its next steps.
Click here to sign up to Retail Gazette‘s free daily email newsletter
