US pharmacy chain Rite Aid (NYSE:RAD) filed for Chapter 11 bankruptcy over the weekend to add to the growing corporate casualty list stemming from the opioid dependency crisis.
In a statement, Rite Aid (NYSE:RAD) said it has agreed to a restructuring with creditors plus US$3.45 billion of new loans to implement its plans.
As well as lawsuits alleging it oversupplied painkillers, Rite Aid (NYSE:RAD) has also seen sales slow.
Net losses in its latest quarter rose to US$306 million, which was accompanied by a warning that the deficit for the year to end February 2024 would be between US$650-680 million.
A new chief executive, Jeffery Stein, was also appointed at the weekend to oversee the restructuring.
Stein said he had "tremendous confidence in this business and the turnaround strategy that has been developed in recent months".
The US Department of Justice filed a writ against Rite Aid earlier this year, alleging thousands of unlawful prescriptions were issued for controlled substances such as fentanyl and oxycodone.
Rite Aid has denied the accusations and filed for the action to be dismissed.