Philadelphia-based Rite Aid announced Sunday that it has filed for bankruptcy and is working on a deal with lenders on a multibillion-dollar restructuring plan, writes John George for Philadelphia Business Journal.

Underperforming stores will likely be closed under the Rite Aid bankruptcy plan to reduce rent expenses. 

It expects most stores to stay open and services to continue for its nearly 1 million customers.

Customers of affected stores will either be transferred to a nearby Rite Aid or to another pharmacy.

Employees of impacted stores will also be transferred to other Rite Aid locations where possible.

Rite Aid has 2,100 retail pharmacy locations across 17 states, including 487 stores in Pennsylvania and 100 in the Philadelphia area. 

It employs more than 6,100 pharmacists and has 47,000 employees in total.

Rite Aid filed a plan that includes receiving $3.45 billion in new financing to support ongoing business operations while allowing it to reduce debt.

“With the support of our lenders, we look forward to strengthening our financial foundation, advancing our transformation initiatives, and accelerating the execution of our turnaround strategy,” said Jeffrey S. Stein, Rite Aid CEO, chief restructuring officer, and board of directors member.

Find out more details about the Rite Aid bankruptcy and restructuring plan in the Philadelphia Business Journal.