In a surprising move, Rite Aid chain is reportedly considering selling up to 500 stores in order to restructure its debt. The move is part of the drugstore chain’s bankruptcy plan due to the struggle it is facing in the highly competitive retail market.
It is said that Rite Aid is currently in advanced talks with potential buyers, and the company could soon receive bids for the stores. The chain has stated that these stores represent the majority of its 3,500 locations across the United States, so the potential sale could give Rite Aid much-needed financial relief.
The news of the potential sale has already had an impact on the chain’s stock. After remaining unchanged for the rest of the day, shares of the company began to slide after the news broke. The decision itself falls in line with the company’s strategy to alleviate its debt burden, as it looks for a way to remain competitive in the saturated retail market.
If the sale goes through, it would be a major move for the chain which operates in 19 states and has a presence in most major markets across the United States. It is unclear which stores would be affected by the sale, but analysts believe that the smaller and less successful stores could be the ones affected.
At the same time, the sale would be advantageous for potential buyers, as they could become major competitors in the retail market. It could be a good opportunity for big-box stores to become significant players in the drugstore market, as Rite Aid locations at high-traffic areas would be more profitable to them.
Rite Aid has yet to provide any official statement on the matter, but these reports have raised questions from customers and shareholders alike. It remains to be seen how the sale of the 500 stores will affect the company and its future plans, but the retail market could soon feel the repercussions.
