Rite Aid Prepares to file Bankruptcy Protection

[Prepharm1214]

MSN

Plan to close 400 stores initially but likely more. Many saw this coming for years but somehow they've managed to limp on.

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[projektreverb]

Another one bites the dust. Probably one of the biggest ones so far…. So happy I got out of retail when I did.

 

[Pronounce Doxazosin]

Yeah, this is big (but not surprising) news
Shame on big corps
Shame on PBMs
And shame on the government for allowing it

 

[mentos]

Haven't they been bankrupt for like 12 years? RIP Thrifty ice cream.

 

[libra08]

Like CVS, Rite aid won’t be able to refinance their sky high debt when interest rate is 20 years high. You will see many of these bankruptcies in the next 1-2 years.

 

[libra08]

Now that’s a drop

 

[gwarm01]

Haven't they been bankrupt for like 12 years? RIP Thrifty ice cream.

My first thought as well. I could swear this was in the news cycle ~5 years ago.

 

[WorthlessOxygen]

Y'all might be thinking of when they were going to merge with Albertsons and then ended up selling about half their stores to Walgreens.

 

[gwarm01]

Y'all might be thinking of when they were going to merge with Albertsons and then ended up selling about half their stores to Walgreens.

Yeah, I think you're right. That was 2018 which is about when I was thinking it happened.

 

[Xenophylia]

And yet every other "pharmacist wanted" ad around here is for Rite Aid...LOL Usually offering sign on bonus after a year..... Kind of fiendish if you ask me....

 

[GrandTheftAutumn]

*WBA and CVS lick their chops*

 

[mentos]

*WBA and CVS lick their chops*

WBA stock price back to 2008 price.

CVS stock back to 2013 price.

Wild.

 

[GrandTheftAutumn]

Can you imagine taking "advantage" of the employee stonk purchase program and been diamond handing it, bro?

 

[Sunshine98*]

they were on that ledge 20 years ago, surprised they made it this long

 

[mentos]

Can you imagine taking "advantage" of the employee stonk purchase program and been diamond handing it, bro?

That's why it's best to sell as soon as eligible. Take the discount and run. I got burned from CVS ESPP. Bought high like mid 80s and sold at high 60s or low 70s. Guess I could have held another 5 years but who knew Covid would happen.

 

[libra08]

That's why it's best to sell as soon as eligible. Take the discount and run. I got burned from CVS ESPP. Bought high like mid 80s and sold at high 60s or low 70s. Guess I could have held another 5 years but who knew Covid would happen.

Yes, if you are allowed to sell right away then sell right away. It is like a guaranteed return. In addition, since risk is minimal, you should max out your contribution. Take your discount and be happy with it.

I honestly don’t know why anyone would invest in Rite Aid, Walgreens or CVS. You work for them…you know how badly they operate but yet, you want to invest in them? Makes no sense whatsoever

 

[confettiflyer]

Yeah, you already rely on your employer for salary/wage, adding on investment performance is too concentrated a risk.

 

[Pronounce Doxazosin]

Dooms day is near

Rite Aid is reportedly in talks with creditors about terms for a bankruptcy plan in which hundreds of its stores would close, according to sources. One individual familiar with the negotiations said the company has suggested closing some 400-500 of its more than 2,100 pharmacies, and either selling or allowing creditors to take over the rest of its operations. The sources noted a group of bondholders would rather liquidate more stores, and the two sides are working to determine how many stores would ultimately be closed. Rite Aid has more than $3.3 billion in debt and more than 1,000 opioid-related federal lawsuits. With many of the company's stores locked into long-term leases, bankruptcy would be one way to deal with them. The sources said Rite Aid plans to go through an auction to sell its Elixir pharmacy business and other key parts of the company.

WSJ News Exclusive | Rite Aid Plans to Shut Down Hundreds of Stores in Bankruptcy

 

[owlegrad]

Yes, if you are allowed to sell right away then sell right away. It is like a guaranteed return. In addition, since risk is minimal, you should max out your contribution. Take your discount and be happy with it.

I honestly don’t know why anyone would invest in Rite Aid, Walgreens or CVS. You work for them…you know how badly they operate but yet, you want to invest in them? Makes no sense whatsoever

I had the opposite attitude about the ESPP at CVS. I figured any employer that cares so little for its employees would surely create great shareholder value and if I have to be the victim in the employment situation I could at least benefit from being a shareholder.

But I didn’t understand concentrating risk at the time - I wouldn’t take that stance now. Although I got lucky and had great returns. I just happened to sell near the top when it was over 100. I don’t follow it closely now that I don’t own it but I don’t think it ever got back to where it was.