Can Rite Aid Still Avert Bankruptcy?
Rite Aid (NYSE: RAD) continues to survive, in many ways despite its best efforts. An attempt to sell out to Walgreens Boots Alliance led to the sale of some of its stores. While that cut debt and gave the company some breathing room financially, the drugstore chain still faces intense competition. Some have speculated the company would have to declare bankruptcy in the near future.
However, Rite Aid has also shown some signs of resilience. Amid a change of direction led by a new CEO, Rite Aid's stock has risen in recent months. However, while these changes could help avert a near-term bankruptcy, it still leaves Rite Aid struggling to find a sustained path forward.
The competitive threat facing Rite Aid comes not only from other drugstores such as CVS Health or Walgreens. It also comes from other consumer staples companies such as Walmart, Costco Wholesale, Kroger, and, lately, Amazon.
Source Fool.com
