This photograph reveals an indication of Rite Aid on its retailer in Pittsburgh on Jan. 23, 2023. Rite Aid, a serious U.S. pharmacy chain, mentioned Sunday, Oct. 15, that it has filed for chapter as a part of its effort to restructure its funds.

Gene J. Puskar/AP

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Gene J. Puskar/AP

This photograph reveals an indication of Rite Aid on its retailer in Pittsburgh on Jan. 23, 2023. Rite Aid, a serious U.S. pharmacy chain, mentioned Sunday, Oct. 15, that it has filed for chapter as a part of its effort to restructure its funds.

Gene J. Puskar/AP

PHILADELPHIA — Major U.S. pharmacy chain Rite Aid mentioned Sunday that it has filed for chapter and obtained $3.45 billion in contemporary financing because it carries out a restructuring plan whereas dealing with falling gross sales and opioid-related lawsuits.

In 2022, Rite Aid settled for as much as $30 million to resolve lawsuits alleging pharmacies contributed to an oversupply of prescription opioids. It mentioned it had reached an settlement with its collectors on a monetary restructuring plan to chop its debt and place itself for future development and that the chapter submitting was a part of that course of.

The plan will “significantly reduce the company’s debt” whereas serving to to “resolve litigation claims in an equitable manner,” Rite Aid mentioned.

In March, the Justice Department filed a grievance towards Rite Aid, alleging it knowingly stuffed tons of of hundreds of illegal prescriptions for managed substances from May 2014-June 2019. It additionally accused pharmacists and the corporate of ignoring “red flags” indicating the prescriptions have been unlawful.

The Justice Department acted after three whistleblowers who had labored at Rite Aid pharmacies filed a grievance.

Jeffrey Stein, who heads a monetary advisory agency, was appointed Rite Aid’s CEO as of Sunday, changing Elizabeth Burr, who was interim CEO and stays on Rite Aid’s board.

Earlier this month, Rite Aid notified the New York Stock Exchange that it was not in compliance with itemizing requirements. During a grace interval, the corporate’s inventory continues to be listed and traded.

The chapter submitting in New Jersey and noncompliance with itemizing requirements wouldn’t have an effect on the corporate’s enterprise operations or its U.S. Securities and Exchange Commission reporting necessities, it mentioned.

Rite Aid mentioned it was arranging for fee of wages and different prices as regular, although some “underperforming” shops amongst its greater than 2,100 pharmacies in 17 states shall be closed.

It earlier reported that its income fell to $5.7 billion within the fiscal quarter that ended June 3, down from $6.0 billion a 12 months earlier, logging a web lack of $306.7 million.