Rite Aid shrinks debt by $200M amid store closures

Pharmacy chain Rite Aid has curbed its net debt of $2.9 billion last year to $2.7 billion, The Washington Post reported June 29. 

The Camp Hill, Pa.-based company has lagged behind its competitors for years, with most of the debt thanks to Rite Aid's 2015 purchase of pharmacy benefit manager Envision Pharmaceutical Services, according to the Post

Another factor weighing the company down is its locations in low-income areas, resulting in less revenue per store, according to the Post. Rite Aid CFO Matt Schroeder told the Post the company plans to close more stores and increase prescription volume in hopes to chisel away its debt. 

Rite Aid completed a cash tender offer of up to $150 million June 28 to buy back its bonds at a lower price, according to a press release, which could also bolster the company's prospects.

Read the full story here.

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