Rite Aid Files for Bankruptcy, Struggling with Debt and Industry Challenges

Rite Aid filed for Chapter 11 bankruptcy protection on Sunday, struggling with industry headwinds and heavy debt load.

The pharmacy chain has racked up nearly $3 billion in losses over the past 6 years. Its debt now exceeds assets by nearly $1 billion.

Rite Aid is facing lawsuits for allegedly filling unlawful opioid prescriptions that contributed to the opioid epidemic.

As the third-largest standalone pharmacy chain, Rite Aid has struggled to compete with rivals CVS and Walgreens.

The company has secured $3.5 billion in financing to continue operations during bankruptcy and plans to accelerate store closures.