Rite Aid emerges from bankruptcy with $2.5B in new financing
Troubled pharmacy chain Rite Aid has emerged from bankruptcy with a restructured business and a whole lot less debt, the company announced this week.
The Chapter 11 restructuring means the company has dropped $2 billion in debt and will now operate as a private company. Rite Aid also said it’s sitting on $2.5 billion in new financing to help shape its new business.
Things at Rite Aid are definitely changing. Former chief financial officer, Matt Schroeder, will take over as the company’s new CEO in the near future, replacing Jeffrey Stein who is heading up restructuring operations.
The promotion of Schroeder marks the fourth CEO to take office at Rite Aid since the beginning of 2023. Schroeder has been with the company for more than 20 years, having joined in 2000 as the vice president of financial accounting.
It is not clear when he will take the reins, and for now Stein is still leading the company during the court-supervised Chapter 11 restructuring.
“Emergence is a pivotal moment in Rite Aid’s history, enabling it to move forward as a significantly transformed, stronger and more efficient company,” Stein said in a statement. “We are grateful for the ongoing support of our customers, associates and partners, and we look forward to continuing to provide leading pharmacy services designed to improve health and wellness outcomes across the communities we serve. I am excited about Rite Aid’s future as it continues to focus on executing its strategy and delivering for its customers and stakeholders.”
As for the ownership of the newly private Rite Aid, that has largely transitioned to its creditors, the announcement said. Common shares of its stock were canceled during bankruptcy proceedings.
Rite Aid is not the only pharmacy chain struggling. In July, Walgreens announced the closure of thousands of stores, as 25% of its locations are “struggling.”
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