As a stronger company with a focused portfolio and improved financial position into the future
PHILADELPHIA, September 3, 2024–(BUSINESS WIRE)–Rite Aid Corporation (“Rite Aid” or the “Company”) today announced that it has successfully completed its financial restructuring and exited Chapter 11 proceedings, positioning the Company to emerge stronger with optimally sized stores, a more efficient operating model, significantly less debt and additional financial resources.
“Emergence is a pivotal moment in Rite Aid’s history, enabling the company to move forward as a significantly changed, stronger and more efficient company,” said Jeffrey S. Stein, Chief Executive Officer and Chief Restructuring Officer. “We are grateful for the continued support of our customers, employees and partners and look forward to continuing to provide leading pharmacy services designed to improve health and well-being in the communities we serve. I am excited about the future of Rite Aid as the company continues to focus on executing its strategy and meeting the needs of its customers and stakeholders.”
Through this process, Rite Aid has eliminated approximately $2.0 billion in debt. In addition, the company has obtained approximately $2.5 billion in exit financing to support the business in the future.
As part of the reorganization, Rite Aid will operate as a private company. Ownership of the company was transferred to certain creditors of Rite Aid and all existing Rite Aid common stock was cancelled under the plan of reorganization.
Separately, Rite Aid announced today that Matt Schroeder, who most recently served as Chief Financial Officer, has been appointed Chief Executive Officer. He succeeds Mr. Stein, who joined the company as Chief Executive Officer and Chief Restructuring Officer to lead the court-supervised Chapter 11 proceedings.
Kirkland & Ellis LLP acted as legal counsel to Rite Aid, Guggenheim Securities, LLC acted as investment banker, and Alvarez & Marsal acted as transformation agent and financial advisor to the company.
About Rite Aid
Rite Aid is a full-service pharmacy committed to improving health outcomes. Rite Aid defines the modern pharmacy by meeting customer needs with a broad range of convenient solutions, including retail and delivery pharmacies and services offered through its wholly owned subsidiary, Bartell Drugs. For more information, visit www.riteaid.com.
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