Rite Aid to close hundreds of stores in bankruptcy: report

Given the conversations remain ongoing, no decisions have been made at this time, Rite Aid said in a statement to Reuters.The Philadelphia-based company operates more than 2,330 stores in 17 U.S. states, although it is much smaller than rivals such asThe Wall Street Journal previously reported that Rite Aid plans to file for bankruptcy protection as the company faces more than $3.3 billion in debt and over a thousand federal lawsuits over its alleged role in the opioid epidemic.

A Rite Aid spokesperson told FOX Business that the company does "not comment on rumors and speculation."filed a lawsuit against Rite Aid earlier this year, claiming that the company had knowingly filled "unlawful prescriptions for controlled substances" in violation of the False Claims Act and Controlled Substances Act.

Bankruptcy would also be the easiest way for Rite Aid to dump a number of its stores, which are trapped in uneconomical long-term leases, the Journal reported. Attorney General Merrick Garland alleges that Rite Aid knowingly filled out hundreds of thousands of unlawful prescriptions.The Justice Department filed a lawsuit against Rite Aid in March, alleging the company "knowingly" contributed to the opioid crisis.

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