Rite Aid is one of the largest drugstores in the United States. In fiscal year 2018, the company reported revenues of $30.4 billion.
However, Rite Aid’s financial situation has been deteriorating in recent years. In June 2019, the company announced that it would be filing for Chapter 11 bankruptcy protection.
There are a number of reasons why Rite Aid’s future is in question. First, the company’s revenue has been declining for years. Second, Rite Aid’s competitive environment has become increasingly difficult. Walmart and Amazon have both entered the drugstore market, and they are both able to offer lower prices and better customer service.
Third, Rite Aid’s debt burden has increased over the past few years. As of June 2019, the company’s total debt was $27.8 billion. This debt burden is likely to become even more difficult to manage in the future, given the company’s declining revenue and increasing debt.
Overall, it is difficult to see how Rite Aid’s future will be positive. The company’s debt burden is likely to increase, its revenue is declining, and its competitive environment has become more difficult.
It is possible that Rite Aid will be able to survive in bankruptcy protection for a period of time, but it is unlikely that the company will be able to return to its former glory.
