via foxbusiness:
Pharmacy giant Rite Aid is negotiating terms of a bankruptcy plan that could see a significant number of its more than 2,100 drugstores permanently close, according to a report.
People familiar with the company’s talks with creditors told the Wall Street Journal that Rite Aid has proposed to close as many as 500 stores in bankruptcy, and either sell or let creditors take over its remaining operations.
One group of bondholders wants to liquidate a larger number of stores, and there is an ongoing discussion on the number of stores to be closed, the Journal reported.
US courts are overwhelmed with bankruptcy cases at record levels.
In August of this year, American courts were overwhelmed with corporate bankruptcy cases.
📈 The number of such claims jumped by 17% compared to July, Bloomberg reported, citing data from Epiq Bankruptcy. pic.twitter.com/e7sO1YTZsG
— Sprinter Press (@SprinterPress) September 25, 2023
Bloomberg: Business Bankruptcies Soar in August as Rising Interest Rates Bite
- By one measure, restructuring filings climbed 54% for August
- Insolvency cases have climbed steadily for 13 months