PHILADELPHIA--(BUSINESS WIRE)--Rite Aid Corporation (“Rite Aid” or the “Company”) today announced that it has successfully completed its financial restructuring and emerged from Chapter 11, marking a new beginning as a stronger company with a rightsized store footprint, more efficient operating model, significantly less debt and additional financial resources.
“Emergence 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 S. Stein, Chief Executive Officer 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. I am excited about Rite Aid’s future as it continues to focus on executing its strategy and delivering for its customers and stakeholders.”
Through this process, Rite Aid has eliminated approximately $2.0 billion of total debt. Additionally, the Company has received approximately $2.5 billion in exit financing to support the business going forward.
In connection with emergence, Rite Aid will operate as a private company. Ownership of the Company transitioned to certain Rite Aid creditors, and all of Rite Aid’s existing common shares were cancelled, pursuant to the Plan of Reorganization.
Separately, Rite Aid today announced 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 process.
Kirkland & Ellis LLP served as Rite Aid’s legal advisor, Guggenheim Securities, LLC as investment banker and Alvarez & Marsal as transformation officer and financial advisor to the Company.
About Rite Aid
Rite Aid is a full-service pharmacy committed to improving health outcomes. Rite Aid is defining the modern pharmacy by meeting customer needs with a wide range of solutions that offer convenience, including retail and delivery pharmacy, as well as services offered through the Company’s wholly owned subsidiary Bartell Drugs. For more information, please visit www.riteaid.com.
