Rite Aid is currently looking for a way to overcome its obvious problems. The drugstore giant is struggling with more than $3.3 billion in debt and more than 1,000 federal lawsuits, according to the Wall Street Journal. In late August, the news outlet reported that Rite Aid was preparing to file for bankruptcy in the coming weeks to cover its debt and pending lawsuits alleging oversupply of opioid prescription painkillers.
CNN reported at the time that a Chapter 11 bankruptcy filing would restructure the company’s debt, including its current legal liabilities. But Rite Aid told the news outlet in August that it “does not comment on rumors and speculation.
According to a new report from The Wall Street Journal, Rite Aid’s bankruptcy plans are now moving forward. The company is currently negotiating with creditors over the terms of a plan that would include liquidating some stores, according to people familiar with the process, the news outlet reported Sept. 22.