Rite Aid pharmacy chain files for bankruptcy

Major U.S. pharmacy chain Rite Aid said Sunday that it has filed for bankruptcy. In the same statement, Rite Aid said it had obtained $3.45 billion in financing and debt reduction agreements from lenders to help the company restructure amid bankruptcy. Rite Aid is the third-largest standalone pharmacy chain in the United States—behind Walgreens and CVS—with over 2,200 stores in 17 states.

What caused Rite Aid to go bankrupt? Several problems face large drug store companies in general, including the rise of retail chains like Amazon, Walmart, and Costco offering pharmacy services. In addition to a competitive market, Rite Aid, like other pharmacy chains, faces a risk of expensive lawsuits alleging it filed illegal prescriptions for opioids. Over the past six years, Rite Aid has reported nearly $3 billion in losses.

Dig deeper: Listen to Mary Muncy’s report on The World and Everything in It podcast about the national drug shortage nearing an all-time high.