Bartell Drugs appears to have won a reprieve of sorts — at least, for now. On Friday, Bartell’s troubled parent, Rite Aid, was cleared to exit bankruptcy after a court approved a restructuring plan that avoids liquidation by handing control of a slimmed-down business to key creditors. Rite Aid has said the settlements and broader restructuring plan keeps open critical neighborhood pharmacies and will save thousands of jobs.
Just 41 Bartell Drugs locations remain open, down from 68 shortly after the Seattle-owned drugstore chain was sold to Rite Aid in 2020. The list also included around 99 Rite Aid locations across Washington , although since May, Rite Aid has filed documents for what may be several additional closures. And in a filing last week, Rite Aid mentions “a successful emergence from” bankruptcy with around 400 fewer store leases than were listed in the May document, although it’s unclear whether or how that would affect to the ultimate store count.
Judge Michael Kaplan said he’d approve a restructuring deal that cuts about $2 billion in debt and gives the pharmacy access to about $2.5 billion in exit financing to fund a turnaround plan its advisers have dubbed “Rite Aid 2.0.
” More The deal also includes a series of settlements resolving investigations by federal authorities and more than 1,000 civil lawsuits related to opioid prescriptions. The legal settlement covers Rite Aid as well as potential claims against its lenders, which are not in Chapter .
