Matthew T. Berry Bankruptcy Law Blog on Lawyers.com

Continuing with the ongoing struggle to survive in a down economy, another company has fallen.

With the recession continuing to get worse, many more are probably coming too. Bankruptcy, once seen as a remote possibility, has become a sad reality for hundreds of retailers and other corporations. The latest victim is Drug Fair Group, a New Jersey pharmacy chain. It filed for Chapter 11 reorganization and has been in conversation with Walgreens to sell some of their assets to the large drug store chain. In fact, assets from 32 of its stores will now belong to Walgreens. The agreement will go through a Bankruptcy Court in Delaware. In order to fund operations for its remaining stores, Drug Fair arranged a four-month secured debtor-in-possession financing facility of $40 million.

Walgreens is clearly making out well with all of its recent acquisitions. In February, Walgreen bought 12 stores from Rite Aid Corp, another competitor. But it continues to feel pressure from the massive threat of Wal-Mart, which introduced $4 monthly prescriptions on many generic drugs two years ago.

If your company is seeking bankruptcy advice or help in the Atlanta area, contact our team of attorneys today. We know bankruptcy law and can assist with your Atlanta Chapter 7, Atlanta Chapter 13 or reorganization efforts.

Berry & Associates - Bankruptcy Lawyers in Atlanta

2751 Buford Hwy, Atlanta, GA 30324
Phone : 1-877-715-0306

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