Pharmacy chain Rite Aid announced this week that it has emerged from Chapter 11 bankruptcy as the company was sold to its creditors.
Rite Aid said it secured $2.5 billion in funding, and was able to use that funding to eliminate nearly $2 billion in debt. In the process, Rite Aid has shuttered numerous stores across the U.S.
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The company also said it has adopted a more efficient operating model.
“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, Rite Aid's outgoing CEO. “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.”
Amid Rite Aid's sale, Stein stepped down as CEO and handed the reins to Matt Schroeder, who most recently served as the company's executive vice president and chief financial officer.
Rite Aid entered bankruptcy with over 2,100 locations. It now has over 1,400 locations in the U.S.
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