Why Rite Aid Stock Is Tumbling Today

Rite Aid Corp RAD shares are falling Monday following reports the company plans to shut down hundreds of stores as part of a bankruptcy plan.

What To Know: According to a Wall Street Journal report citing people familiar with the talks, Rite Aid plans to close between 400 and 500 of its 2,100 locations in bankruptcy and either sell or let creditors take over remaining operations.

The report indicates that some of its creditors want the company to close even more of its locations. 

The news comes as Rite Aid has more than $3.3 billion in debt and is facing more than a thousand lawsuits claiming the company oversupplied opioids. Rite Aid has denied the allegations.

Rite Aid Corp operates a large retail drugstore chain in the United States.

See Also: Morgan Stanley Strategist Advocates Defensive Stance As Market Dynamics Shift

RAD Price Action: Rite Aid shares are down more than 85% since the start of the year. The stock was down 20.8% at 47 cents at the time of writing, per Benzinga Pro.

Photo: Mike Mozart from Flickr.