Rite Aid has successfully completed its financial restructuring and emerged from Chapter 11 bankruptcy, the company announced on Tuesday.
The pharmacy chain used its bankruptcy proceedings to close hundreds of stores, divest its pharmacy benefit company Elixir, and reach settlements with lenders, drug distribution partner McKesson, and other creditors.
Ownership of Rite Aid has shifted to certain creditors, and all of the company’s existing common shares have been cancelled. The company also appointed Matt Schroeder, formerly Chief Financial Officer, as the new CEO, succeeding Jeffrey Stein.
Rite Aid has reduced its total debt by approximately $2 billion and secured about $2.5 billion in exit financing to support its future operations.
In June, a U.S. bankruptcy judge approved Rite Aid’s restructuring plan, which averted a complete shutdown and liquidation of the company.
Rite Aid filed for Chapter 11 in October 2023, following a fiscal year in which it reported $750 million in losses and $24 billion in revenue. The company faced 1,600 opioid-related lawsuits, including a federal case alleging it failed to address suspicious prescriptions for opioid pain medications.
