Rite Aid Exits Bankruptcy

Rite Aid Corp. (Philadelphia) announced it has completed a major financial restructuring and emerged from Chapter 11 bankruptcy. As part of that process, the pharmacy chain closed about 700 locales, leaving it with roughly 1500.

“Emergence [from bankruptcy] is a pivotal moment in Rite Aid’s history, enabling it to move forward as a significantly transformed, stronger and more efficient company,” said Jeffrey Stein, CEO and Chief Restructuring Officer. “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.”

Through the Chapter 11 process, Rite Aid has eliminated about $2 billion in debt, while also receiving roughly $2.5 billion in exit financing. Going forward, Rite Aid will operate as a private company, with ownership of the company transitioned to select creditors, and all of its existing common shares being canceled.

Separately, Rite Aid announced that Matt Schroeder, who most recently served as CFO, has been appointed CEO. He succeeds Stein, who joined the company to lead the court-supervised bankruptcy process.