Rite Aid proposed closing nearly a fourth of its 2,100 pharmacies and declaring bankruptcy, people familiar with the matter told The Wall Street Journal in a Sept. 22 story.
The outlet recently reported the pharmacy chain is preparing to file for Chapter 11 bankruptcy as it faces $3.3 billion in debt and numerous lawsuits over its alleged role in the opioid epidemic. Chapter 11 bankruptcies are commonly used to reorganize a company's structure to continue its business while paying creditors over time.
The bankruptcy discussions include a plan to close between 400 and 500 of its stores while either having creditors take the remaining pharmacies or selling them. Rite Aid is also considering an auction to sell sections of the business, such as its Elixir pharmacy unit.