In a significant development in the retail pharmacy sector, Rite Aid, the third-largest standalone pharmacy chain, filed for bankruptcy on Sunday, signaling the closure of approximately 400 to 500 of its 2,200 stores.
The $3.3 billion debt load and costly legal battles related to the opioid crisis further increased the company’s financial woes.
The pharmacy landscape is facing a broader crisis, with Walgreens pharmacists and technicians staging walkouts across the country, and CVS stores in Kansas City experiencing similar unrest due to low pay and understaffed stores.
Declining profits from prescription drug sales, driven by lower reimbursement rates, and pressure on front-end sales due to competition from Amazon, Walmart, and Dollar General, have made the industry a challenging space for established players like CVS, Walgreens, and now, Rite Aid.
Reporting for WGRT – Choze Powell
