Rite Aid is at risk of being delisted from the New York Stock Exchange and considering a reverse stock split to prop its share price above $ 1 to comply with the exchange’s trading rules, the company said Friday.
Walgreens Boots Alliance in 2017, forcing Rite Aid to sell a chunk of its stores and leaving the chain with a much smaller footprint than its rivals. Then in 2018, Rite Aid abandoned its planned merger with grocery chain Albertsons amid shareholder opposition, throwing its prospects into question.
A number of Rite Aid shareholders opposed the Albertsons deal, saying the drugstore chain could get a better deal and it was a way for privately held Albertsons to go public without giving Rite Aid much. The companies aborted their merger agreement ahead of a shareholder vote in August.
After the deal collapsed, Rite Aid overhauled its board of directors. It separated the CEO and chairman positions, naming director Bruce Bodaken as chairman and leaving John Standley in place as CEO. It also added three independent directors.