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THE WHAT? Ceremony Assist, a U.S. drugstore chain going through monetary challenges, has filed for chapter safety and plans to shut underperforming shops.
THE DETAILS The corporate, which operates over 2,000 retail shops in 17 states and had $24 billion in income in fiscal yr 2023, incurred $750 million in losses resulting from mounting litigation prices, together with opioid-related lawsuits. Ceremony Assist intends to fund its restructuring with a $3.45 billion chapter mortgage, contemplate promoting its retail enterprise, and resolve its authorized points whereas working throughout chapter.
THE WHY? The chapter submitting has led to a dispute with drug distributor McKesson, which provides nearly all of prescription medicines to Ceremony Assist. Ceremony Assist, owing $700 million on its drug provide contract, has taken authorized motion to forestall the termination of the settlement. The corporate anticipates additional retailer closures because it proceeds via Chapter 11 chapter proceedings.
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