Pharmacy chain Rite Aid is filing for Chapter 11 bankruptcy with the intent of reducing the company's debt.
The company's decision, announced via a press release on Sunday, comes after a report last month stated that the business plans to file for bankruptcy and would close up to 500 stores as part of that process. Rite Aid has assured customers that they can continue to shop at its stores both in-person and online despite the filing.
Stein also said that through this filing, the company will close"additional underperforming stores" with the intent to"reduce the company’s rent expense" and strengthen its financial performance. He added that Rite Aid will work closely with its landlords"to determine the best path forward." In filing for bankruptcy, Rite Aid said that doing so would help the chain resolve litigation claims in an equitable manner, among other benefits that its filing grants. Earlier this year, the Department of Justice sued Rite Aid and alleged that the company knowingly filled unlawful prescriptions for controlled substances that had"red flags" amid the country's opioid crisis.
The pharmacy chain operates 2,054 stores across 17 states, with its main competitors being CVS and Walgreens.