On March 9, 2024, Rite Aid Corporation announced that it had completed its Chapter 11 financial restructuring, emerging as a more efficient and financially robust company. The restructuring has allowed Rite Aid to eliminate approximately $2 billion in debt and secure around $2.5 billion in exit financing. This restructuring aligns with the company’s new strategy, which includes a streamlined store footprint and an improved operating model. As a result of this process, Rite Aid will now operate as a private entity, with ownership transitioning to certain creditors and all existing common shares being canceled.
In a related leadership change, Matt Schroeder, the company’s former Chief Financial Officer, has been appointed as the new Chief Executive Officer, succeeding Jeffrey S. Stein. Stein, who led the Chapter 11 process as CEO and Chief Restructuring Officer, will be stepping down from his role. Kirkland & Ellis LLP acted as Rite Aid’s legal advisor, while Guggenheim Securities, LLC served as an investment banker, and Alvarez & Marsal provided transformation and financial advisory services. Rite Aid, a comprehensive pharmacy service provider, is dedicated to enhancing health outcomes through various customer-centric solutions, including its Bartell Drugs subsidiary.
