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PHILADELPHIA — Rite Aid Corp. announced Tuesday 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.
The company also announced that Matt Schroeder, who most recently served as chief financial officer, has been appointed chief executive officer. He succeeds Jeffrey Stein, who joined the company as chief executive officer and chief restructuring officer to lead the court-supervised Chapter 11 process.
“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 Stein. “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.
Schroeder joined Rite Aid in 2000 and most recently served as the company’s chief financial officer.
“Matt has served in various leadership positions during his tenure at Rite Aid and has a deep understanding of all aspects of our business,” said Bruce Bodaken, chair of Rite Aid’s Board of Directors during its Chapter 11 process. “He has shown outstanding leadership through this process and is an excellent fit for the company as it advances as a stronger organization.”
“I am honored to lead Rite Aid on its journey as we continue serving our customers and communities,” said Mr. Schroeder. “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.”
“It has been a privilege to serve as CEO and CRO of Rite Aid alongside the best team in the business,” said Stein. “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.”
Bodaken added, “I thank Jeff for his dedication and commitment to guiding the Company through the complex restructuring process. I know Rite Aid is well-positioned for the future because of his expertise, vision and hard work over these past 11 months.”
