On Jan. 11, the filing date, Rite Aid announced it would suspend financial reporting until July.
Rite Aid posted a Q4 loss in the drugstore's earnings report on March 31.
Millions of prescription customers moved to other drugstores, such as CVS or Rite Aid.
If just one bank balked, the deal would fall through and Rite Aid would surely go bankrupt.
Worse, managed care companies are curbing reimbursements for prescription drugs, which account for 62% of Rite Aid's revenue.
Rite Aid reported a 2.3% decline over the prior year period in pharmacy same store sales during October.
Other competitors in the services sector include: Walgreen (WAG), Rite Aid (RAD), and PharMerica Corporation (PMC).
The company currently operates 7, 930 drugstores and competes with CVS Caremark and Rite Aid among others.
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According to this story somebody is going after Hertz on a similar theory to the Rite Aid case.
While Rite Aid reported a 4.7% increase in prescription count at comparable stores, Walgreen saw a decline of 1.8%.
Standley, Rite Aid's chief executive, tried to stay positive despite the difficult quarter, noting positive trends during the quarter.
The majority of analysts think investors should stand pat on Rite Aid, with three of four analysts rating it hold.
The majority of analysts think investors should stand pat on Rite Aid, with two of three analysts rating it hold.
There's a risk that drugstore chain Rite Aid, which accounted for 13% of McKesson's revenue last year, may default on its debt.
Jessick made the case: Although a heavy debt load made Rite Aid's bottom line dismal, the stores were capable of operating profitably.
If Rite Aid didn't report, the company would be in technical default on its debt unless it could get waivers from lenders.
While Rite Aid now has enough cash to run stores and meet obligations through 2005, the turnaround is by no means complete.
Rite Aid says its results were impacted by a drop in sales, expenses related to its growth initiatives and a refinancing-linked charge.
Rite Aid Chief Executive MarySammonsMary Sammons handed over the reigns of the company to Chief Operating Officer JohnStandleyJohn Standleyas planned on Wednesday.
How one longs for the apathetic anonymity of the Rite Aid cashier!
Today will be a relatively quiet one on Wall Street, with drugstore Rite Aid and Smithfield Foods among the few companies releasing earnings.
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Walgreen currently operates at 8, 537 locations, including 8, 072 drugstores and competes for prescriptions with CVS Caremark and Rite Aid among others.
By the time 350 accountants had sorted out the numbers, Rite Aid had precious little cash to pay off all the debt coming due.
Though he later ran Rite Aid and took a run at becoming New York's governor, "I always took my books with me, " he says.
More striking, perhaps: Of the largest 500 companies in the U.S. today, just 12 boast women chief executives, including Rite Aid, Xerox, PepsiCo and eBay.
At the Rite Aid drugstore chain, the board installed Martin Grass, son of the founder, in the top job in 1995 but soon regretted it.
Despite Jessick's initial analysis, the books understated Rite Aid's financial ills.
Then Miller joined Rite Aid as chief executive in December 1999.
Rite Aid's changing of the guard came on a positive note Wednesday, accompanying a first-quarter earnings report that included less red ink than analysts anticipated.
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