Rite Aid Now a Private Company After Emerging From Bankruptcy
It’s been an up-and-down year for Rite Aid Corp., which closed hundreds of stores nationwide after filing for bankruptcy protection in October 2023. This week, the drugstore chain announced that it has emerged from the Chapter 11 process as a private company and under a new leader.
Through this process, Rite Aid eliminated approximately $2 billion of total debt. Additionally, the company has received approximately $2.5 billion in exit financing to support the business going forward.
“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, who served as CEO and chief restructuring officer during the reorganization period. “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.”
Under this new organization, CFO Matt Schroeder has been elevated to the CEO position. Schroeder, who has worked in various roles at Rite Aid since joining the company in 2000, is taking the reins from Stein. “I am honored to lead Rite Aid on its journey as we continue serving our customers and communities,” Schroeder asserted. “Thanks to the dedication of the entire organization, we are beginning our next phase as a transformed company. I see Rite Aid’s remarkable potential, and I look forward to working with the team as we remain committed to our purpose of helping our customers achieve whole health for life.”
Added Stein: “It has been a privilege to serve as CEO and CRO of Rite Aid alongside the best team in the business. I am proud of what we accomplished in strengthening the company’s foundation and believe Rite Aid is well-positioned for future success. I look forward to supporting Matt as he transitions into the CEO role.”
This summer, Rite Aid closed all of its brick-and-mortar locations in Michigan and also announced a major pullback in the state of Ohio.
Philadelphia-based Rite Aid operates approximately 1,700 retail pharmacy locations across 16 states. The company is No. 26 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America.
