Rochester Drug Cooperative says it is filing a voluntary petition for chapter 11 bankruptcy relief.
The local drug company says that the filing will allow it the opportunity to conduct business while the company seeks a qualified buyer who is willing to continue the operations as a going concern.
This action happens after Rochester Drug Cooperative had paid a $20 million fine after admitting that it knowingly violated federal narcotics laws. The company then shut down its narcotics workers.
Spokesperson for RDC, Jeff Eller, says that the company has been under significant financial stress and the ability to stabilize the business has been hampered by ongoing litigation the company is facing and a declining ability to borrow working capital.
RDC says it has cut costs and tried to sell portions of its assets but those measures have not produced the help the company needs, it decided to file for Chapter 11.